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JPMorgan CEO calls cryptocurrencies “decentralised Ponzi schemes”

The cryptocurrency market is a highly sought-after sector with adoption at its peak. Despite its upward trend, there is still opposition and criticism. This time, Bitcoin was criticised in front of US lawmakers. When a US lawmaker brought up the executive’s past criticism of cryptocurrencies, Jamie Dimon didn’t hold back.

In congressional testimony on September 21, the CEO of JPMorgan Chase & Co. stated, “I’m a major sceptic of crypto tokens, which you call currency, like Bitcoin. These “decentralised Ponzi schemes”.

JPMorgan CEO calls cryptocurrencies "decentralised Ponzi schemes"
JPMorgan CEO calls cryptocurrencies “decentralised Ponzi schemes”

According to Dimon, digital assets linked to the value of the US dollar or other currencies wouldn’t pose a problem if they were regulated properly.

Dimon has previously stated that he has no interest in personally supporting the sector and has previously called bitcoin a “fraud.” On occasion, he has changed his mind about cryptocurrencies, once emphasising that they have significant applications like cross-border payments.

Despite Dimon’s opinions on cryptocurrencies, JPMorgan is involved in blockchain as the company keeps on making inroads into the blockchain industry. In order to improve settlement efficiency, the financial behemoth introduced JPM Coin, its own internal stablecoin, in October 2020. JPM Coin was the first cryptocurrency backed by a US bank.

The bank unveiled Onyx, a new business unit devoted to blockchain technology, a week after the coin was made available. Large institutional clients have since used the Onyx platform for 24/7 international payments.

Following the launch of its virtual lounge in the blockchain-based community of Decentraland in February, JPMorgan became the first significant bank in the metaverse. The action came after the company’s report, which described the metaverse as a $1 trillion opportunity.

Will JPMorgan’s interest in cryptocurrencies decline?

It appears that important JPMorgan Chase employees weren’t overly pleased with the cryptocurrency sector. Takis Georgakopoulos, the company’s global head of payments, said earlier this week that cryptocurrency has “a niche use case.” In addition, he noted that over the previous six months, the demand for cryptocurrency for payments had decreased drastically. The introduction of bears is thought to be the cause of this.

Takis Georgakopoulos mentioned the revolutionary nature of blockchain technology once more. As a result, the community predicts that JPMorgan will continue to place significant bets on blockchain technology while avoiding cryptocurrency.

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