JPMorgan Chase CEO Jamie Dimon described himself as a “big sceptic” of “crypto tokens that you term currency like Bitcoin” while speaking before US Congress and referred to them as “decentralised Ponzi schemes,” Cointelegraph noted.
On Wednesday, the House Financial Services Committee held an oversight hearing where Dimon was questioned about his reasons for not becoming more involved in the cryptocurrency industry, as reported by Cointelegraph.
After stressing that he sees value in blockchain, decentralised finance (DeFi), ledgers, smart contracts, and “tokens that do stuff,” Dimon went on to criticise cryptocurrency tokens that pose as currencies.
When asked about his opinions on the proposed stablecoin legislation in the United States, Dimon responded that he thought stablecoins were fine as long as they were properly regulated, and that this regulation should be similar to that which applies to money market funds.
Dimon has previously stated that he has no interest in personally supporting the sector and has previously called Bitcoin (BTC) a “fraud.” Occasionally, he has changed his mind about cryptocurrencies, pointing out that they potentially have significant applications, such cross-border payments.
Despite Dimon’s opinions on cryptocurrencies, JPMorgan has been actively pursuing blockchain technology. In order to improve settlement efficiency, the financial behemoth introduced its own internal stablecoin, JPM Coin, in October 2020. JPM Coin was the first cryptocurrency backed by a U.S. bank. The bank introduced Onyx, a new business unit devoted to blockchain technology, a week after launching the coin. Large institutional clients have used the Onyx platform ever since for 24/7 international payments, Coitelegraph noted.
(With insights from Cointelegraph)