JPMorgan chief Jamie Dimon calls cryptocurrencies ‘decentralised Ponzi schemes’

Cryptocurrencies are “decentralised Ponzi schemes”, but blockchain technology holds potential. This was stated by JPMorgan chief Jamie Dimon at a hearing of the U.S. House of Representatives Financial Services Committee, according to Business Insider.

“I am a great sceptic of digital tokens that you call currency, particularly Bitcoin. These are decentralised Ponzi schemes, and the notion that this benefits anyone is simply unbelievable,” he said.

Dimon said that cryptocurrencies facilitate various illicit practices such as money laundering. He stressed that these assets pose a threat.

At the same time, the JPMorgan head acknowledged that “real” technologies, such as DeFi and utility tokens, can be useful. In particular, he stated that he would not object to the emergence of a regulated stablecoin.

Dimon reminded that the financial conglomerate has its own digital token — JPM Coin. The development of the latter is handled by Onyx, which is also focused on blockchain projects.

The JPMorgan chief is no stranger to criticising Bitcoin and other cryptocurrencies.

In October 2021 he said that digital gold “is worth nothing”, and noted the unpopularity of his view.

In August 2022, Onyx head Umar Faruk described most cryptocurrencies as “garbage”.

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