JPMorgan CEO Calls Bitcoin a “Decentralized Ponzi Scheme”

Jamie Dimon, the CEO of JPMorgan Chase & Co has once again reiterated his negative opinion on the crypto industry. This time he described Bitcoin (BTC) and other digital assets as “decentralized Ponzi schemes.”

Jamie shared his anti-crypto stance during an appearance at the JPMorgan 41st Annual Healthcare. According to him, cryptocurrencies are frequently used for illegal activities including money laundering and sex trafficking. Additionally, the CEO said most people who own digital currency use it as an investment tool rather than as payment for goods and services.

Earlier in September, Jamie while speaking before US Congress in a hearing convened by the House Financial Services described himself as a “major skeptic” of cryptocurrencies, especially BTC. Although the CEO maintains that he sees value in blockchain, decentralized finance (DeFi), ledgers, and smart contracts, he has always been critical of cryptocurrencies that refer to themselves as currencies.

However, Jamie has a different stance on blockchain technology and stablecoins. He believes stablecoins are fine if properly regulated as these could provide benefits to the financial system. Recall that the United States House of Representatives is working on a draft bill for stablecoins.

Meanwhile, Jared Gross, JPMorgan’s Chief of institutional portfolio strategy at the end of the year said institutional investors are not interested in cryptocurrency and are staying away from the cryptocurrency market as the uncertainty in the industry is a threat to money managers. According to Gross, the bear market ended the notion that Bitcoin is a kind of hedge against inflation.

JPMorgan Goes Bullish With Crypto

Interestingly, it appears that JPMorgan shares a different position from its CEO regarding the crypto industry as it provides its clients with some crypto services. 

The financial behemoth after published research that describes the Metaverse as a $1 trillion opportunity made its entry with the construction of a virtual lounge on Decentraland.

Also, the investment bank has been actively recruiting professionals to advance its position in the blockchain and cryptocurrency space. Recent research from JP Morgan Chase shows that almost 13% of the American population has owned cryptocurrencies at some point in their lives.