JPMorgan CEO blasts Bitcoin and crypto as ‘decentralized Ponzi schemes’

JPMorgan Chase (NYSE: JPM) CEO Jamie Dimon has extended his criticism of Bitcoin (BTC) and cryptocurrencies, equating them to a ‘Ponzi scheme.’ 

Dimon, who was speaking before the United States lawmakers on September 21, stated that on a personal level, he is a major skeptic of cryptocurrencies, having previously called Bitcoin a ‘fraud.’

“I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. <…>They are decentralized Ponzi schemes,” Dimon said. 

He also took issue with cryptocurrencies that identify as currency at a period when several jurisdictions are considering adopting Bitcoin as a legal tender. At the same time, the executive stressed that blockchain, decentralized finance (DeFi), ledgers, and smart contracts have significant value. 

JPMorgan’s involvement with blockchain  

It is worth noting that despite Dimon’s criticism of Bitcoin, JPMorgan is actively involved with incorporating blockchain into its services. For instance, the lender has its token dubbed JPM Coin for intraday repurchase agreements. The token enables other financial institutions to take out short-term loans with high-quality collateral. 

The executive also shared his views on the proposed United States stablecoin bill that has come in the wake of the Terra (LUNA) ecosystem crash. According to Dimon, there is nothing wrong with stablecoins, but they should be regulated similarly to money market funds.

The draft law proposed that it would be illegal for entities to issue endogenously collateralized stablecoins. 

Furthermore, Dimon has appeared to soften his view on cryptocurrencies in various instances, pointing out that they can efficiently facilitate cross-border payments. 

Featured image via NBC News YouTube.