Cryptocurrencies are harmful “Ponzi schemes” that put billions of {dollars} in danger yearly, JPMorgan CEO Jamie Dimon declared in a scathing evaluation of the unstable digital belongings.

In congressional testimony on Wednesday, Dimon referred to himself as “a major skeptic” on cryptocurrencies like Bitcoin.

“They are decentralized Ponzi schemes, and the notion that’s good for anybody is unbelievable,” he advised lawmakers, calling Bitcoin and different cryptocurrencies “dangerous.”

Bitcoin, which was hovering simply above $19,000 at 6:45 a.m. ET on Thursday, has misplaced greater than half its worth in 2022, as cryptocurrencies throughout the board have suffered a widespread sell-off that’s grow to be referred to as the “crypto winter.”

House assembly

The U.S. House Committee on Financial Services held a listening to on Wednesday through which representatives from main American banks together with Citigroup, Bank of America and Wells Fargo gave proof. The committee’s Chairwoman Maxine Waters and Ranking Member Patrick McHenry are at the moment creating a bill on regulating stablecoins—a digital asset class that’s tied to the worth of an asset just like the U.S. greenback.

Under the latest draft of the invoice, seen by Bloomberg, it might be unlawful to situation or create new “endogenously collateralized stablecoins” like TerraUSD, which collapsed earlier this yr in one of many largest ever crypto bankruptcies ever.

Dimon stated in his testimony to the House on Wednesday that billions of {dollars} had been misplaced yearly to cryptocurrencies, noting their hyperlinks to cash laundering, ransomware, intercourse trafficking and theft.  

However, he argued that stablecoins wouldn’t be so problematic in the event that they had been correctly regulated.

Bitcoin ‘Worthless’

The JPMorgan chief has lengthy been a vocal critic of Bitcoin and different decentralized digital belongings—and refuses to refer to them as currencies.

In October final yr, as Bitcoin’s worth was approaching an all-time excessive, Dimon said the cryptocurrency was “worthless.”

Back in 2017, he referred to Bitcoin as a “fraud”—an assertion he later said he regretted. Last year, nonetheless, he doubled down on his aversion to the asset, saying he was “not a Bitcoin supporter” and had “no interest in it.”

JPMorgan itself hasn’t been fairly so crucial of Bitcoin, with the financial institution saying as recently as May that it noticed “significant upside” for crypto buyers. However, the lender’s funds boss stated this week that whereas cryptocurrency had a “niche use case,” demand for the tokens as a fee technique had drastically declined over the previous six months.

The agency, and Dimon himself, have additionally been backers of Blockchain expertise, which is the muse of cryptocurrencies like Bitcoin.

In 2019, JPMorgan turned the primary American financial institution to create and efficiently take a look at a digital coin representing a fiat foreign money—on this case, the U.S. greenback. The JPM Coin, enabled by Blockchain, is utilized by the financial institution to carry out intraday repurchase agreements.

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