Categories: ePaymentMarketing

JPMorgan Boss Calls Cryptocoins ‘Decentralised Ponzi Schemes’

Cryptocurrencies are nothing more than “decentralised Ponzi schemes”, Jamie Dimon, the chief executive of Wall Street bank JPMorgan Chase & Co, has told the US Congress.

Dimon described himself to lawmakers as “a major sceptic on crypto tokens”, saying the notion cryptocoins were “good for anybody is unbelievable”, adding that they were “dangerous”.

He said billions of dollars were lost every year to cryptocurrencies and noted their links to money laundering, ransomware, theft and other criminal enterprises.

But he said so-called stablecoins, which are linked to the value of a fiat currency, wouldn’t be problematic with the proper regulation.

Stablecoin legislation

JPMorgan actively uses the blockchain technology that underlies Bitcoin for its own purposes, Dimon said.

Dimon spoke before the US House of Representatives’ Financial Services Committee, whose chair Maxine Waters and Ranking Member Patrick McHenry are working to reach an agreement on stablecoin legislation.

Under the latest version of the bill seen by Bloomberg it would be illegal to issue or create new “endogenously collateralised stablecoins”, a model similar to that of TerraUSD, which collapsed earlier this year in one of the biggest-ever crypto routs.

In 2017 Dimon said he believed Bitocin was a “fraud”, but later said he regretted the comment.


Last October, as Bitcoin reached a record high, Dimon said the crypto-asset was “worthless” but that he would follow customers.

The crypto token has lost more than half of its value so far this year amidst a broader selloff of digital assets.

In 2019 JPMorgan became the first American bank to create and deploy a digital coin representing a fiat currency, the blockchain-based JPM Coin, which it uses to carry out intraday repurchase agreements.

Matthew Broersma

Matt Broersma is a long standing tech freelance, who has worked for Ziff-Davis, ZDnet and other leading publications

Recent Posts

Microsoft Faces UK Probe Over Inflection Staff Hiring

Poaching staff? UK's CMA regulator confirms phase one investigation of Microsoft's “hiring” of former Inflection…

2 hours ago

Elon Musk To Relocate SpaceX, X HQ To Texas

Leaving California. Elon Musk protests new gender-identity law, says he will move headquarters of SpaceX…

3 hours ago

Hackers ‘Publish Walt Disney Internal Slack Data’

Hackers reportedly publish data from thousands of Disney internal Slack communications, including data on strategy…

1 day ago

Apple Shares Reach All-Time High On AI Optimism

Apple shares surge after Morgan Stanley rates company 'top pick' over AI plans and says…

1 day ago

Musk Confirms Robotaxi Delay For Design Change

Elon Musk confirms delay of Tesla robotaxi launch as company's shares surge after he publicly…

1 day ago

Silicon UK In Focus Podcast: The Value of Data

Discover the transformative power of data in our latest podcast. Learn how leveraging data can…

1 day ago