Cryptocurrencies are “decentralized Ponzi schemes”, however, blockchain technology has potential. This was stated by the head of the financial conglomerate JPMorgan, Jamie Dimon, at a hearing in the Financial Services Committee of the US House of Representatives, reports business insider.
“I am a big skeptic about digital tokens that you call currency, in particular bitcoin. These are decentralized Ponzi schemes, and the notion that this is beneficial to anyone is simply incredible,” he said.
According to Dimon, cryptocurrencies facilitate various illegal practices such as money laundering. He stressed that these assets pose a threat.
However, the head of JPMorgan 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 recalled that the financial conglomerate has its own digital token – JPM Coin. The latter is being developed by the Onyx division, which is also focused on blockchain projects.
The head of JPMorgan is not the first time criticizing bitcoin and other cryptocurrencies.
In October 2021, he stated that digital gold was “worthless” and noted the unpopularity of his opinion.
In August 2022, Onyx Umar Farooq called most cryptocurrencies “garbage”.
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