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Cryptocurrencies Are "Decentralized Ponzi Schemes," Says JPMorgan CEO James Dimon

CJ - Cryptocurrency Enthusiast

James Dimon, CEO of JPMorgan Chase, a sizable worldwide investment bank with headquarters in New York, answered, "I'm a strong skeptic on crypto tokens, which you name currency, like Bitcoin," when asked by lawmakers why he isn't more involved in the cryptocurrency investment business. According to Bloomberg, Dimon, who recently appeared before Congress and received criticism for his frequent condemnation of cryptocurrencies, proclaimed firmly held beliefs against them, referring to them as "decentralized Ponzi schemes."

According to Dimon, there would be no concern with stablecoins, or crypto assets tied to the value of the US dollar or other currencies. It is significant to note that JPMorgan Chase employs blockchain for both the settlement of collateral and trading traditional financial assets. However, under planned U.S. legislation to regulate stablecoins, currencies like Terra USD might be outlawed for two years. According to Bloomberg, under the most recent version of the bill, it would be illegal to issue or create new "endogenously collateralized stablecoins." The requirement would apply to stablecoins that advertise a fixed monetary value and wholly rely on the value of another digital asset produced by the same inventor to maintain their fixed price.

Controversial Statements Made By Dimon In The Past

When it comes to cryptocurrency, Dimon has a reputation for making contentious claims. In 2017, he labeled Bitcoin a hoax, however he later expressed sorrow for that judgment. Later, he claimed it was useless, but promised to follow clients; more recently, he declared decentralized finance, in which algorithms take the role of banks, to be "real."

At a corporate conference in June of this year, Dimon warned investors to prepare for an economic "storm." Where Dimon said that while a hurricane-like economic crisis is not a certainty, it is a possibility. As a result, he urged lawmakers to be ready for the worst, "so that we can take the appropriate steps if and when that happens."

The current economic downturn is gathering different opinions of what is to come. There has never been a moment in time where cryptocurrencies have experienced a major economic drawback. Would the Bitcoin price remain stable as it has done so far for the past half a year? Would it still be considered an asset to be held for the future? It’s an uncharted territory, where believers and non-believers of Bitcoin collide. If you believe that Bitcoin is part of our lives in the upcoming times, then the best time to buy Bitcoins is now. The best website to buy Bitcoin is BCBitcoin.

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