JPMorgan CEO Says Bitcoin Is A "Decentralized Ponzi Scheme"

Decentralized Ponzi Scheme

Dimon recently referred to Bitcoin (BTC) and other cryptocurrencies as a Ponzi scheme during testimony before the House Financial Services Committee. 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 called BTC a "fraud." Occasionally, he has changed his mind about cryptocurrencies, pointing out that they potentially have significant applications, such as cross-border payments.

JPMorgan Actively Pursuing Blockchain Technology

Despite Dimon's opinions on cryptocurrencies, JPMorgan has been actively pursuing blockchain technology. For improved settlement efficiency, the financial behemoth introduced its 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 for 24/7 international payments.

After opening its virtual lounge in the blockchain-based universe of Decentraland in February, JPMorgan made history by becoming the first significant bank in the Metaverse. The action was in response to a paper that the company had published describing the Metaverse as a $1 trillion possibility. Tahreem Kamptom, a former Microsoft executive, was hired by JPMorgan to serve as its senior payments executive, according to a September 9 announcement. JPMorgan has been actively recruiting new employees to advance into blockchain and cryptocurrency.