Cryptocurrency tokens are ‘decentralised Ponzi schemes’, JPMorgan Chase CEO Jamie Dimon tells US lawmakers
- Dimon acknowledged being a ‘major sceptic’ when one lawmaker brought up his history of criticising cryptocurrencies
- The executive once called bitcoin a ‘fraud’, comments he said he regretted, and JPMorgan has since adopted its own blockchain and token
Jamie Dimon didn’t mince words when a US lawmaker mentioned the executive’s history of criticising cryptocurrencies.
“I’m a major sceptic on crypto tokens, which you call currency, like bitcoin,” the JPMorgan Chase & Co chief executive officer said in congressional testimony Wednesday. “They are decentralised Ponzi schemes.”
Stablecoins – digital assets tied to the value of the US dollar or other currencies – wouldn’t be problematic with the proper regulation, and JPMorgan is active in blockchain, Dimon said.
The comments represent the latest criticism levelled against digital currencies by Dimon, who once called bitcoin “a fraud” before eventually saying he regretted the comments.
House Financial Services Committee Chairwoman Maxine Waters and Ranking Member Patrick McHenry have been working to reach an agreement on stablecoin legislation. Under the latest version of the bill, it would be illegal to issue or create new “endogenously collateralised stablecoins” such as those similar to TerraUSD, the algorithmic stablecoin that collapsed earlier this year, according to a copy obtained by Bloomberg.