JPMorgan Chase CEO Jamie Dimon reiterated his robust skepticism towards Bitcoin on April 18, calling it a “fraud” and a “Ponzi scheme” regardless of the lender’s involvement in BlackRock’s spot BTC exchange-traded fund (ETF).
Dimon, who has a historical past of critiquing the digital foreign money, made the most recent feedback throughout an interview on Bloomberg TV, the place he expressed doubts about Bitcoin’s utility and legitimacy as a type of cash.
He mentioned:
“Bitcoin and related cryptocurrencies are merely not purposeful as currencies. In the event that they suppose they’re a foreign money, there’s no hope for it. It’s basically a Ponzi scheme dressed up as tech innovation.”
Regardless of the JP Morgan CEO’s long-standing criticism of Bitcoin, the lender has been serving as an Licensed Participant for BTC ETFs since their launch and has been concerned in a number of blockchain-based initiatives for quite a few years.
Dimon acknowledged the potential of sure facets of blockchain know-how through the interview, significantly people who allow sensible contracts. He mentioned:
“There are components inside the broader crypto sector, similar to these facilitating sensible contracts and blockchain purposes, that do current actual worth.”
The veteran banker’s feedback come amid a backdrop of fluctuating crypto values, with Bitcoin having lately rebounded to commerce across the $63,000 mark, considerably up from its lows however properly beneath its all-time excessive.
Progress regardless of criticism
Dimon has been vocal about his considerations with cryptocurrencies up to now, citing their potential to allow unlawful actions similar to cash laundering, fraud, and tax evasion because of their anonymity and lack of regulation.
He has beforehand referred to as for extra stringent oversight to forestall the monetary crimes related to cryptocurrencies.
Regardless of Dimon’s important stance over time, the crypto market has continued to develop, with Bitcoin’s market capitalization lately surpassing $1.2 trillion. His feedback mirror ongoing debates inside the monetary neighborhood concerning the viability and security of investments in cryptocurrencies.
Trade analysts counsel that whereas skepticism like Dimon’s just isn’t unusual amongst conventional monetary leaders, the innovation and adoption of blockchain know-how present no indicators of slowing down. As discussions concerning the regulatory framework proceed, the way forward for cryptocurrencies stays a hotly contested matter throughout international monetary markets.
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