JPMorgan CEO Jamie Dimon: Crypto Tokens, Bitcoin Are ‘Decentralized Ponzi Schemes’

speaking in congressional testimony On Wednesday, JPMorgan CEO Jamie Dimon said he was a “big skeptic of crypto tokens.” […] like Bitcoin” and called them “decentralized Ponzi schemes”.

“The idea that it’s good for everyone is amazing,” Dimon said, pointing to the use of cryptocurrencies in ransomware attacks, sex trafficking and money laundering.

Dimon also spoke about stablecoins, which are cryptocurrencies pegged to the value of fiat currencies. They are usually backed by cash or physical assets. In some cases, their value can be controlled by algorithms.

The most famous example of an algorithmic stablecoin, TerraUSD (UST), imploded in May, wiping out $83 billion from decentralized finance and destroying Terra’s ecosystem.

Dimon argued that a “properly regulated” stablecoin would not be a problem, and added that he sees value in decentralized finance (Challenge), blockchain and “tokens that do something”. He added that JPMorgan is “a big blockchain user.”

Dimon’s cryptographic ambivalence

The JPMorgan chief has a long history of giving mixed messages on crypto. In 2014 he was a precocious nocoiner, narrative CNBC that Bitcoin was “a terrible store of value” and that the cryptocurrency “can be replicated over and over again”.

Over the years, Dimon has referred to the leading cryptocurrency as “fraud” and “fool’s gold“but in 2019, JPMorgan launched its own stablecoin pegged to the US dollar, JPM Coin. The bank also allows its wealth management clients to buy Bitcoin, Ethereum, bitcoin money and Classic Ethereum or certain related products of Shades of grey and Osprey.

Dimon told attendees at the Institute of International Finance’s annual meeting last year that he “think personally[s] bitcoin is worthless.However, in a letter to shareholders earlier in April, he wrote, “Decentralized finance and blockchain are real new technologies that can be deployed publicly and privately, licensed or not.” Dimon’s letter also said that JPMorgan is “to the bestof these innovations.

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