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JPMorgan CEO Thinks Cryptos Are Decentralized Ponzi Schemes

The CEO of JPMorgan said cryptos are nothing more than decentralized Ponzi schemes. Earlier, Jamie Dimon called Bitcoin “fraud.” JP Morgan Chase (NYSE:JPM) launched...
JPMorgan CEO Thinks Cryptos Are Decentralized Ponzi Schemes © Reuters. JPMorgan CEO Thinks Cryptos Are Decentralized Ponzi Schemes
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  • The CEO of JPMorgan said cryptos are nothing more than decentralized Ponzi schemes.
  • Earlier, Jamie Dimon called Bitcoin “fraud.”
  • JP Morgan Chase (NYSE:JPM) launched its first-ever major cryptocurrency backed by a U.S. bank.

The CEO of JPMorgan Chase & Co., Jamie Dimon, in a summit with the House Financial Services Committee, stated that cryptos are nothing more than decentralized Ponzi schemes.

In the past, Dimon addressed himself as a crypto skeptic on several occasions, which keeps him from being active in the crypto community. This was not the first time the CEO went vocal about his lack of interest in the crypto world.

Earlier, Dimon called Bitcoin a “fraud.” He further added that the digital currency was only fit for use by drug dealers, murderers, and people living in places such as North Korea.

Dimon, during the session, exclaimed:

I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. They are decentralized Ponzi schemes, and the notion that it’s good for anybody is unbelievable.

On the contrary, the bank has been venturing into blockchain and smart contracts. JPMorgan began using blockchain technology for collateral settlements and performed its pilot transaction. The bank also became the first major financial institution in the metaverse following the opening of its virtual lounge in the blockchain-based world Decentraland last February.

Interestingly a couple of years ago, JP Morgan Chase launched its first-ever major cryptocurrency backed by a U.S. bank. The digital token, which was named “JPM Coin,” would be used to settle payments between clients.

While Dimon constantly dissed bitcoin as a “fraud,” the other management at the bank consistently said blockchain and regulated digital currencies kept their promise. Each JPM Coin was pegged for one U.S. dollar, which means that it is not as volatile as cryptocurrencies like the Bitcoin and is similar to a stablecoin.

The post JPMorgan CEO Thinks Cryptos Are Decentralized Ponzi Schemes appeared first on Coin Edition.

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