JPMorgan Chief Jamie Dimon Calls Crypto Decentralized Ponzi Scheme

    During congressional testimony on Wednesday, September 21, JPMorgan chief Jamie Dimon as soon as once more made a pointy assault on digital property. “I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. They are decentralized Ponzi schemes,” he added.

    This shouldn’t be the primary time that Jamie Dimon has been attacking crypto in sturdy phrases. Back throughout the 2017 bull run, Dimon additionally referred to as Bitcoin a fraud, nevertheless, he later mentioned that he regretted making these feedback.

    Interestingly, JPMorgan continues to supply crypto providers to its institutional purchasers. However, Dimon nonetheless continued to imagine them to be ineffective. Although Dimon holds sturdy criticism for public cryptocurrencies. He doesn’t have an identical view on stablecoin.

    The JPMorgan chief mentioned that stablecoins tied to the worth of the USD or different fiat currencies gained’t be problematic if backed by correct laws. U.S. lawmakers have been engaged on getting stablecoin laws in place. Earlier this week, the House of Financial Services Committee proposed legislation that might again algorithmic stablecoins just like the TerraUSD.

    The fall of the Terra ecosystem and its native UST stablecoin has drawn regulatory consideration worldwide. The nature of the autumn has made regulators uncomfortable the place the peg of a stablecoin is tied to different native tokens.

    JPMorgan Chief on Blockchain

    America’s largest banking establishment JPMorgan has a supported blockchain and so is Jamie Dimon. In truth, JPMorgan has its native crypto JPM Coin used for immediate cross-border settlements throughout the globe. Over the previous couple of years, the JPM coin has settled trillions of {dollars} in cross-border commerce. As the Bloomberg report explains:

    JPMorgan makes use of its customized blockchain and token, JPM Coin, to conduct intraday repurchase agreements, which permits different monetary establishments to take out short-term loans utilizing high-quality collateral.

    In the previous, Jamie Dimon had acknowledged the existence of decentralized finance (DeFi) which may probably exchange banks sooner or later.

    Bhushan is a FinTech fanatic and holds aptitude in understanding monetary markets. His curiosity in economics and finance draw his consideration in direction of the brand new rising Blockchain Technology and Cryptocurrency markets. He is constantly in a studying course of and retains himself motivated by sharing his acquired data. In free time he reads thriller fictions novels and typically discover his culinary abilities.

    The offered content material might embody the non-public opinion of the writer and is topic to market situation. Do your market analysis earlier than investing in cryptocurrencies. The writer or the publication doesn’t maintain any duty in your private monetary loss.

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