In a fiery statement that reverberated across the financial landscape, JPMorgan Chase’s formidable CEO Jamie Dimon once again said launched a verbal attack on crypto.
Known for his opinions, Dimon outright called for a complete ban on digital currencies and linked them to criminal activities, without holding back.
The CEO did not mince his words during a hearing in the Senate together with seven other major bank bosses:
“If I were the government, I would close it down.”
In response to a question from Senator Elizabeth Warren, he stated that he was firmly against all forms of crypto, including bitcoin.
Dimon expressed concern that terrorists, drug dealers and rogue states would use them as a means of financing and stated he would shut it down if he was in charge.
Although Dimon’s bank is deeply involved in blockchain – the technology powering the $1.6 trillion cryptocurrency industry – his comments are the latest attack on the industry.
Dimon bashes Crypto
In previous comments, Dimon referred to Bitcoin as “a hyped up scam,” a term he subsequently retracted. Moreover, he had likened it to a ‘pet rock’.
Despite his later confessions of remorse, he continued to use the term “decentralized Ponzi scheme” to describe bitcoin and other digital currencies after his previous rants.
Dimon and other bank leaders, including Bank of America Corp.’s Brian Moynihan, have said their institutions have taken steps to prevent terrorists and other criminals from taking advantage.
In contrast, Warren advocated expanding the anti-money laundering regulations that banks currently enforce to digital assets, especially the cryptocurrency market. Every CEO expressed his agreement.
As of today, the market cap of cryptocurrencies stood at $1.55 trillion. Chart: TradingView.com
According to sources, JPMorgan only completed its first blockchain-based collateral resolution in October in a deal with BlackRock and Barclays.
JPMorgan was a pioneer in this field with its JPM Coin, a proprietary stablecoin that allows users to make blockchain-based payments.
JPMorgan said the token could process up to $10 billion in daily transactions over the next two years, up from current levels of around $1 billion.
The price of bitcoin, the world’s largest cryptocurrency in terms of market valuation, has risen more than 150% this year to around $44,000, despite calls for strict government action, according to market tracker CoinMarketCap.
Cryptocurrency criticism unites senator and bankers
Warren took advantage of the session to criticize the cryptocurrency sector by working with Republicans and prominent bankers.
Obviously, Dimon does not have the power of a government and cannot independently initiate the ban on cryptocurrencies.
As the leader of a private financial company, he may only make suggestions and express opinions; he cannot make significant policy changes.
Nevertheless, it showed an unusual convergence of interests between the crypto industry and the senator from Massachusetts, a longtime enemy of banks, who claimed that cryptocurrency supported illegal transactions.
The price of bitcoin, the world’s largest and most popular cryptocurrency, has risen more than 150% this year, crossing the $44,000 mark on Wednesday, according to the latest market data, despite calls for a government shutdown.
Featured image by Ting Shen/Bloomberg via Getty Images
