Throughout congressional testimony on Wednesday, September 21, JPMorgan chief Jamie Dimon as soon as once more made a pointy assault on digital property. “I’m a significant skeptic on crypto tokens, which you name foreign money, like Bitcoin. They’re decentralized Ponzi schemes,” he added.
This isn’t the primary time that Jamie Dimon has been attacking crypto in sturdy phrases. Again throughout the 2017 bull run, Dimon additionally referred to as Bitcoin a fraud, nonetheless, he later mentioned that he regretted making these feedback.
Apparently, JPMorgan continues to supply crypto providers to its institutional purchasers. Nonetheless, Dimon nonetheless continued to imagine them to be ineffective. Though Dimon holds sturdy criticism for public cryptocurrencies. He doesn’t have the same view on stablecoin.
The JPMorgan chief mentioned that stablecoins tied to the worth of the USD or different fiat currencies gained’t be problematic if backed by correct rules. U.S. lawmakers have been engaged on getting stablecoin rules in place. Earlier this week, the Home of Monetary Companies Committee proposed legislation that will again algorithmic stablecoins just like the TerraUSD.
The autumn of the Terra ecosystem and its native UST stablecoin has drawn regulatory consideration worldwide. The character of the autumn has made regulators uncomfortable the place the peg of a stablecoin is tied to different native tokens.
JPMorgan Chief on Blockchain
America’s largest banking establishment JPMorgan has a supported blockchain and so is Jamie Dimon. The truth is, JPMorgan has its native crypto JPM Coin used for fast cross-border settlements throughout the globe. Over the previous few years, the JPM coin has settled trillions of {dollars} in cross-border commerce. Because the Bloomberg report explains:
JPMorgan makes use of its customized blockchain and token, JPM Coin, to conduct intraday repurchase agreements, which permits different monetary establishments to take out short-term loans utilizing high-quality collateral.
Prior to now, Jamie Dimon had acknowledged the existence of decentralized finance (DeFi) which might probably substitute banks sooner or later.
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