While speaking to U.S. lawmakers, JPMorgan Chase CEO Jamie Dimon expressed his skepticism towards cryptocurrencies, referring to them as a type of “decentralized Ponzi scheme.”
When asked about his reluctance to engage more actively in the crypto market during a hearing with the House Financial Services Committee on Sept. 21, Dimon acknowledged the value of blockchain technology, decentralized finance (DeFi), ledgers, and smart contracts. However, he criticized crypto tokens that present themselves as currencies.
Regarding the proposed U.S. stablecoin bill, Dimon stated that properly regulated stablecoins, similar to money market funds, are acceptable in his view.
In the past, Dimon has been outspoken in his criticism of Bitcoin, once labeling it as a “fraud.” Despite his skepticism, he has recognized the potential benefits of cryptocurrencies in certain scenarios, such as facilitating cross-border payments.
Despite Dimon’s reservations about cryptocurrencies, JPMorgan has embraced blockchain technology. The financial institution introduced its own stablecoin, JPM Coin, in October 2020, becoming the first U.S. bank to back a cryptocurrency. This move aimed to enhance settlement efficiency.
Subsequently, JPMorgan established a dedicated blockchain technology division called Onyx, catering to the needs of its institutional clients for global payments round the clock. The bank even ventured into the Metaverse by opening a virtual lounge in Decentraland, a blockchain-based virtual world, recognizing the significant potential of the Metaverse as a trillion-dollar opportunity.
JPMorgan’s efforts to expand its presence in the blockchain and crypto space have included hiring new talent, such as former Microsoft executive Tahreem Kamptom, who joined as a senior payments executive in September. Kamptom’s background in crypto-related payment methods is expected to be valuable to JPMorgan as it explores blockchain technology further.
Other major U.S. bank CEOs, including Jane Fraser of Citigroup, Brian Moynihan of Bank of America, and Charles Scharf of Wells Fargo, indicated that their institutions do not intend to finance crypto mining when questioned by lawmakers during the hearing.
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