JP Morgan CEO Renews Criticism, Calls Bitcoin a 'Fraud' And 'Ponzi Scheme'

JP Morgan CEO Renews Criticism, Calls Bitcoin a 'Fraud' And 'Ponzi Scheme'

  • The CEO of JP Morgan has declared that Bitcoin is a fraud and Ponzi scheme and is not suitable as a currency
  • Dimon has previously referred to Bitcoin as a "pet rock" and criticized it for facilitating criminal activities
  • He mentioned that cryptocurrencies that facilitate smart contracts and blockchain applications could hold value journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.

Jamie Dimon, the Chief Executive Officer of JP Morgan, reaffirmed his stance on Bitcoin, calling it a "public decentralized Ponzi scheme."

The billionaire banker and prominent figure on Wall Street discussed various topics, including market trends, technology, and geopolitical risks, during his appearance on BloombergTV.

JP Morgan CEO Jamie Dimon renews criticism
Dimon has consistently condemned Bitcoin, linking it to illicit activities like money laundering and terrorism financing. Photo credit - Fortune, UOL Economia
Source: UGC

Following a prolonged period of decline, the price of Bitcoin surged above $70,000 in March 2024 and currently hovers around the $63,000 mark, resulting in a market value of $1.2 trillion.

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Dimon slams Bitcoin

Dimon reiterated his scepticism about Bitcoin's viability as a currency, emphasizing his long-standing belief that it lacks prospects in that area.

He said:

“If you mean crypto like Bitcoin, I’ve always said it’s a fraud.
"If they think they're a currency, there's no hope for it. It's a Ponzi scheme."

Blockchain apps might have value

Nevertheless, he acknowledged the significance of blockchain technology and smart contracts, acknowledging their potential applications.

Dimon clarified that if a cryptocurrency provides something valuable, such as smart contracts, which have intrinsic value, then blockchain technology serves a purpose.

Dimon has frequently criticized Bitcoin in recent years, likening it to smoking a cigarette, labelling it as "dangerous" to own, discouraging people from purchasing it, and advocating for governments to prohibit it.

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While Dimon recognizes the potential of blockchain and smart contracts, he has consistently condemned Bitcoin, linking it to illicit activities like money laundering and terrorism financing.

The billionaire banker has previously suggested that if these negative use cases cannot be addressed, regulators should step in and shut down Bitcoin.

However, this would pose a significant challenge given the extensive network of over 20,000 Bitcoin nodes currently in operation.

There has been a lot of controversy about the identity of "Satoshi Nakamoto", the pseudonym of Bitcoin's creator and author of a white paper that introduced the cryptocurrency to the world in 2008.

Reacting to Dimon's negative comments, Joel Osoba, a crypto expert, told that the JP Morgan CEO's opinion is not entirely correct.

He said Bitcoin provides access to financial services for the unbanked, fostering financial inclusion globally, hence a promising future.

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He said:

"As adoption grows and infrastructure improves, Bitcoin's future shines bright, potentially revolutionizing finance and empowering individuals worldwide with greater control over their wealth.
"With PayPal, Square, and other major platforms enabling cryptocurrency transactions, Bitcoin's integration into everyday financial systems is accelerating.
"As trust and understanding of cryptocurrencies expand, Bitcoin's acceptance as a legitimate store of value and medium of exchange becomes inevitable."

Nigeria mulls blocking Binance over Forex manipulation

In related news, reported that the Nigerian government is contemplating blocking the online platforms of Binance and other cryptocurrency companies

This is to prevent alleged manipulation of the foreign exchange market and illicit financial transfers by users of these platforms.

According to reports, digital asset platforms are frequently used to manipulate FX values by creating fictitious transactions that either drive value up or down.


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