• Jamie Dimon believes that Bitcoin and different public schemes are Ponzi schemes with hyperlinks to illicit actions.
  • Nevertheless, Dimon believes that with correct regulation, stablecoins wouldn’t be problematic.

JPMorgan chief Jamie Dimon is as soon as once more again lashing out at Bitcoin and different cryptocurrencies available in the market. Throughout congressional testimony on Wednesday, September 21, Jamie Dimon was blunt to the purpose with out mincing his phrases when a U.S. lawmaker requested him about his historical past of criticizing digital property. Responding to this, Dimon said:

I’m a significant skeptic on crypto tokens, which you name foreign money, like Bitcoin. They’re decentralized Ponzi schemes… and the notion that it’s good for anyone is unbelievable. So we sit right here on this room and discuss numerous issues, however $2 billion have been misplaced. Yearly $30 billion in ransomware, AML, intercourse trafficking, stealing… it’s harmful.

That is the most recent criticism coming for cryptocurrencies from Dimon however actually not the primary. Again in 2017, the JPMorgan CEO referred to as Bitcoin a “fraud.” Though Dimon is a significant critic of Bitcoin, his financial institution JPMorgan is likely one of the largest banking establishments within the U.S. providing its shoppers entry to Bitcoin and different cryptocurrency funds.

Calling out this twin play, one of many Twitter respondents wrote: “Jamie Dimon ought to actually specify his opinions/beliefs. He feels like a narrative-pushing hypocrite. If JPM actually believed it was a Ponzi Scheme, their ethics board would disagree in permitting buyers to become involved with any digital property”.

Jamie Dimon on blockchain and stablecoins

Though Jamie Dimon has been one of many largest critics of public cryptocurrencies, he’s fairly bullish on the underpinning blockchain know-how. Dimon is kind of optimistic about the advantages of blockchain in monetary companies.

JPMorgan has deployed its native blockchain together with native coin JPM Coin for immediate cross-border settlements. Over the previous few years, the JPM Coin has performed billions of {dollars} in cross-border settlements. In addition to, the Wall Avenue financial institution additionally leverages blockchain know-how to conduct ” intraday repurchase agreements, which permits different monetary establishments to take out short-term loans utilizing high-quality collateral”.

Together with blockchain, Dimon holds a optimistic view of stablecoins. These are notably digital property tied to the worth of U.S. {Dollars} or different fiat currencies. Dimon believes that with correct regulation, stablecoins wouldn’t be problematic.

America businesses have been maintaining a detailed watch on the stablecoins working within the nation. Earlier this week, the Home Monetary Companies Committee put ahead a proposal of introducing a two-year ban on algorithmic stablecoins like TerraUSD. The TerraUSD (UST) stablecoin was pegged 1:1 to the U.S. Greenback backed by the buying and selling of its sister token LUNA. However earlier this 12 months, your entire Terra ecosystem collapsed eroding greater than $40 billion of buyers’ wealth.

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