The emergence of several cryptocurrency coins and organizations decreases the currency’s integrity. People are creating the digital currency to defraud people of their money.
This has caught the eye of certain influential people in society. The recent criticism comes from Chase Jamie Dimon, the CEO of JPMorgan, a crypto skeptic. He is not a big fan of bitcoin and often criticizes the credibility of the investment. Dimon recently testified before the House Financial Service Committee by labeling Bitcoin as a Ponzi scheme.
Jamie Dimon is quoted saying,
“I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. They are decentralized Ponzi schemes.”
A Ponzi is an investment where early investors rip the benefits from the money put in by late investors. Dimon’s statements mean that Bitcoins are created to benefit early investors. At the end of the investment, late investors might be at risk of benefiting zero from the scheme. To some extent, this is true. Recent crypto schemes function for a short time. These schemes only help early investors. Countries like the united states are forcing crypto organizations to register with SEC. The intention is to reduce and prevent fraudulent digital currency organizations.
Jamie Dimon Doesn’t Celebrate Bitcoin’s Decline
Jamie Dimon has reiterated his negative stance on Bitcoin (BTC). He stresses that he has little interest in cryptocurrencies. Dimon said this openly on CNBC on 23 January.
When asked if he was happy with Bitcoin’s collapse in 2018, Dimon said he was not. He pointed out that multiple media outlets reported his skeptical comments. He insisted that he did not intend to be a currency spokesman. In an interview, Dimon was asked if Bitcoin was better than marijuana stocks, and he said yes.
The CEO of JP Morgan reiterated his support for the idea of blockchain and the underlying technology behind Bitcoin.
Dimon believes blockchain is a fundamental technology, a modern database everyone can access and trust. Dimon was previously reported bullish on distributed ledger technology (DLT). He has been claiming since 2018 that he prefers DLT in various cases. This is contradictory because Bitcoin is a form of DLT.
Jamie Dimon’s Cryptocurrency Master Plan
JPMorgan’s Blockchain Head has revealed plans for JPM Coin, a USD-pegged cryptocurrency held in JPMorgan Chase accounts. The cryptocurrency will initially be used internally. The currency will function among JPMorgan Chase’s wholesale clients to move funds faster. This prevents relying on the traditional Swift interbank messaging system. The $339 billion bank has more going on with both cryptocurrencies.
In a statement issued today, JPMorgan Chase said,
“Ultimately, JPM Coin will reduce customer counterparty. It will reduce settlement risk, lower capital requirements, and enable instant value transfer. We believe that it can bring great benefits to blockchain applications.”
Cryptocurrency and Bitcoin are the latest forms of digital investment currency. The digital currency scheme has improved people’s lives by creating income. It is the newest form of investment other than money. Billionaires are emerging from the system. Some disadvantages hinder the progress of this digital currency.