• JPMorgan boss Jamie Dimon not at a loss for crypto criticism
• Investors fell victim to hysteria
• Regulatory authorities accountable
JPMorgan CEO Jamie Dimon not a crypto fan
Jamie Dimon, CEO of major US bank JPMorgan, is known for not being a fan of cryptocurrencies. In the past, the group leader has repeatedly expressed criticism of Bitcoin, Ethereum & Co. and described the digital assets as “fool’s gold” and “digital snowball system”.
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Differentiation between blockchain and cryptocurrencies
In an interview with Maria Bartiromo from Fox Business, Dimon was again not at a loss for a critical assessment of the crypto market. Speaking on Mornings with Maria, which hosted the JPMorgan CEO, Bartiromo pointed to Dimon’s previous skepticism, which he found to be right, as evidenced by the crash of popular crypto exchange FTX and the subsequent plunge in cryptocurrency prices. However, Dimon explained that blockchains are “real technology” and instead it is cryptocurrencies that have failed – which is why he has also criticized the crypto market in the past. “I called it a decentralized Ponzi scheme because people just hyped it,” Dimon said.
Damages in the billions
In the FTX debacle, however, Dimon criticized the hysteria that prevailed on the crypto market and caused numerous investors to suffer dramatic losses. “Many people were harmed,” said the CEO of the major bank. “They were retirees, grandmothers, low-income people, and it was a shame.” According to data from the blockchain analysis company Chainalysis, the crash of the trading platform is likely to have relieved the crypto market by $9 billion.
Lack of investor protection
In addition to FTX and the optimistic mood of crypto investors, Dimon also sees the authorities as responsible for the sharp drop in prices. “A kind of regulatory framework should have been put in place immediately so that there is a certain level of investor protection,” the banker demanded. Although the regulators subsequently took protective measures, these came too late for many investors.
US dollars already digital enough
Additionally, JPMorgan CEO Bartiromo agreed that the US dollar is already “digital enough” to make cryptocurrencies obsolete. Real-time transfers are also possible with the Greenback. Although Dimon admitted that transactions abroad are more complicated and expensive, this is mainly due to the requirements of the central banks. “There are legitimate complaints about the current system,” he admitted. Nevertheless, this does not legitimize resorting to Bitcoin & Co. instead. “I don’t think cryptocurrencies are the solution,” Dimon pointed out. “But some of the technologies could be the solution.”
JPMorgan built its own blockchain on which the JPM Coin was placed. The token is intended to facilitate transfers from customers of the bank. The digital coin should be able to be exchanged for a sum of money in US dollars. However, the JPM Coin should be understood more as a means to an end, the focus is still on the US currency.
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