JPMorgan CEO Jamie Dimon rails against Bitcoin again

taketonews

• Digital Assets, a Ponzi scheme?
• Bitcoin as “Pet Rock”
• Blockchain technology as a solution for the international financial system

On the fringes of the World Economic Forum in Davos, JPMorgan boss Jamie Dimon once again expressed his skepticism about Bitcoin, Ethereum and Co. In an interview with CNBC, he again described Bitcoin as an “inflated fraud”. Dimon has already proven several times that he is not a fan of cryptocurrencies.

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Bitcoin criticism: cryptocurrencies as a decentralized snowball system

In an interview with CNBC in Davos, he also emphasized that he was not surprised by the FTX bankruptcy and described the whole hype “about this thing” as extraordinary. “It’s outrageous. The regulators should have stopped this a long time ago,” he renewed his criticism of US regulators. The head of the big bank had already asked the regulatory authorities to act on investor protection several times.

Jamie Dimon emphasizes that a distinction must be made between the digital assets and applications on the blockchain. Cryptocurrencies are a “pet rock” – a pet stone. He draws a comparison to a toy that was hyped in the USA in the 1970s and consisted of pebbles in a transport packaging and was intended as a funny substitute for a pet. Initially, “Pet Rock” celebrated enormous success, but sank into insignificance after a short time.

Blockchain technology in action at JPMorgan

Despite all the CEO’s criticism of cybercurrency, JPMorgan Bank has been active in the crypto sector since 2017. JPMorgan’s wholesale payments blockchain division, Onyx, for example, partnered with Singapore’s DBS Bank, Japan’s SBI Digital and the Singapore Stock Exchange’s digital asset platform to perform the world’s first Decentralized Finance (DeFi) transaction in November 2022 an Ethereum Layer 2 blockchain. The US bank followed the hype surrounding the Metaverse in spring 2022 by opening a virtual bank branch in Decentraland.

Dimon does not believe that cryptocurrencies are the solution for the international financial system, he emphasized in Switzerland. However, he conceded that blockchain technologies, such as those used by JPMorgan, could be the solution to speed up foreign transactions. “Blockchain is a technological ledger system that we use to move information. We’ve used it for overnight repos, intraday repos, and for money transfer. So that’s a technological ledger that we believe is it can be used,” said the JPMorgan boss in an interview with CNBC. For these blockchain transactions, JPMorgan has launched the JPM Coin, which is intended to make it easier for customers to transfer funds and can be exchanged for US dollars. However, this is not a substitute for the US dollar, but rather a technical necessity.

Bitcoin as a “Ponzi Scheme”: Reception on the Net

“I think it’s all a waste of time and I have no idea why you’re bothering with it,” Jamie Dimon said in a sweeping attack on cryptocurrencies, also questioning whether mining would end at 21 million. With his statement “How do you know that it will stop at 21 million? Well, maybe it will be 21 million and the image of Satoshi will appear and laugh at you all”, was criticized by the crypto community, which also supports its open source -Knowledge questioned.

Also calling digital assets an “inflated scam,” Dimon drew ridicule on Twitter for not having JPMorgan involved in the Madoff scam, “the biggest Ponzi scheme in history.”

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Image sources: Jemal Countess/Getty Images for Time, Wit Olszewski / Shutterstock.com



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