Jamie Dimon’s comments came at the annual hearing of the US Senate Banking Committee, where the uncertainty of cryptocurrency regulation was discussed. When asked by Senator Elizabeth Warren if cryptocurrencies could be considered an attractive tool for criminals, Dimon responded that he has always been opposed to cryptocurrencies and Bitcoin because “the only real use case for it is criminal activity.”
According to Dimon, users can make instant transactions without going through Know Your Customer (KYC) procedures. Dimon added that Bitcoin can be used to circumvent sanctions and violate the requirements of the Office of Foreign Assets Control (OFAC).
“If I were the government, I would have banned Bitcoin a long time ago. It is used only for crime – in drug trafficking, for money laundering or tax evasion,” said the CEO of JPMorgan Chase.
Also present at the hearing were executives from major banks Wells Fargo, Bank of America, Citigroup and Goldman Sachs. They all agreed with Senator Warren that cryptocurrency companies are subject to the same anti-money laundering regulations as banking institutions.
Despite Dimon’s skepticism about Bitcoin, JPMorgan is expanding its operations in blockchain and digital assets. In 2020, JPMorgan developed its own stablecoin, JPM Coin, to improve wholesale payments. In October, the bank’s management reported that the stablecoin’s daily transaction volume had reached $1 billion. In October, in collaboration with investment firm BlackRock and Barclays, JPMorgan launched a blockchain-based application for clearing and pledging tokenized shares.
Source: Bits
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