Broken Record? JPMorgan CEO Continues Rant On Bitcoin, Calls It A 'Ponzi Scheme'

Zinger Key Points
  • Jamie Dimon dubs Bitcoin a decentralized Ponzi scheme, while bank continues to offer crypto services.
  • He has often referred to the asset as worthless, fraud and advised investors to avoid it.
Broken Record? JPMorgan CEO Continues Rant On Bitcoin, Calls It A 'Ponzi Scheme'

JPMorgan Chase JPM CEO Jamie Dimon's tirade against cryptocurrencies continues.

Despite the investment bank's ongoing efforts to boost its crypto capabilities, Dimon blasts Bitcoin BTC/USD for being a decentralized Ponzi scheme.

See Also: JPMorgan CEO Still 'Doesn't Care About Bitcoin,' Even If His Clients Do

"I am a major skeptic on crypto tokens, which you call currency like Bitcoin," he said. "They are decentralized Ponzi schemes and the notion that it's good for anybody is unbelievable. So we sit here in this room and talk about a lot of things, but $2 billion have been lost. Every year, $30 billion in ransomware. AML, sex trafficking, stealing, it is dangerous."

Dimon, 66, made the comments during a congressional testimony on Wednesday. The JPMorgan honcho is a longtime vocal critic of digital currencies, especially Bitcoin, and has often referred to the asset as "worthless" and fraudulent, advising investors to avoid it.

JPMorgan's Crypto Ambitions

Despite Dimon’s stance, JPMorgan remains committed to blockchain technology and providing crypto services, despite the bear markets dampening investors' enthusiasm in the sector.

See Also: JPMorgan Chase's Blockchain Unit Plans To Bring Trillions Of Dollars In Tokenized Assets To DeFi

Dimon further said with the right legislation, stablecoins — digital assets linked to the value of the U.S. dollar or other currencies — would not pose a problem.

The New York-based firm also gave wealth management clients access to six Bitcoin funds last year. One is a part of the Osprey Funds, while four are from Grayscale Investments.

The sixth is a Bitcoin fund created by New York Digital Investment Group, a technology and financial services company (NYDIG).

JPMorgan had provided a positive outlook on the Metaverse at the beginning of 2022, forecasting that the industry may grow to be a trillion-dollar business in the years to come.

The banking behemoth earlier this month posted a job listing to hire a new vice president that specializes in niche technology, including Web3, cryptocurrency, fintech, and the metaverse.

See Also: Most Of Crypto 'Still Junk,' JPMorgan's Blockchain Head Says

Earlier this year, JPMorgan opened a blockchain-based virtual lounge in Decentraland MANA/USD named after its blockchain unit Onyx.

The firm also published an 18-page report describing the metaverse as a $1 trillion market opportunity. In July 2021, JPMorgan forecast that Ethereum’s ETH/USD shift to Proof-of-Stake could kickstart a $40 billion staking industry by 2021.

See Also: JPMorgan Seeks To Hire Metaverse, Crypto Expert

Are you ready for the next crypto bull run? Be prepared before it happens! Hear from industry thought leaders like Kevin O’Leary and Anthony Scaramucci at the 2022 Benzinga Crypto Conference on Dec. 7 in New York City.

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