JPMorgan Chase CEO Jamie Dimon says crypto tokens are like pet rocks. The manager additionally believes crypto regulation ought to be strengthened, stating: “The regulators who beat up on banks ought to possibly focus somewhat extra on crypto.”
JPMorgan Chase’s Jamie Dimon Compares Crypto to Pet Rocks
The chairman and CEO of worldwide funding financial institution JPMorgan Chase, Jamie Dimon, talked about crypto and its regulation following the collapse of crypto alternate FTX in an interview with CNBC Tuesday.
He was requested whether or not the FTX meltdown is contained and doesn’t matter or whether or not he believes it’s a image of one thing bigger that’s occurring within the economic system. The JPMorgan boss mentioned:
Crypto is an entire sideshow, okay, and also you guys spend an excessive amount of time on it. I’ve made my views completely clear about crypto tokens are like pet rocks, and persons are hyping these things up.
Pet rocks are simply rocks in customized cardboard bins, marketed as dwell rocks in 1975. Over 1 million pet rocks had been offered for $4 every and the fad lasted about six months.
Commenting on U.S. Treasury Secretary Janet Yellen stating that the FTX collapse was “a Lehman second inside crypto,” the JPMorgan chief govt opined: “I don’t suppose she meant a Lehman second … Crypto is price a trillion {dollars}.”
Dimon additionally believes that crypto regulation ought to be strengthened. “The opposite factor the American public ought to take a look at … in case you take a look at all of the shopping for and promoting, so if bitcoin is price like beneath a trillion {dollars} right this moment, and we’re not even certain that may be a actual market by the best way, that 20 to 30 billion of ransomware a yr that we learn about, 20 to 30 billion of alternate prices that we learn about, a number of AML anti-terrorism financing, tax avoidance, intercourse trafficking, by which what why we permit these things to happen,” he continued, emphasizing:
I believe, you already know, the regulators who beat up on banks ought to possibly focus somewhat extra on crypto.
Whereas downplaying the importance of cryptocurrency, Dimon reiterated his perception in blockchain know-how, stating:
That doesn’t imply blockchain shouldn’t be actual. That doesn’t imply sensible contracts received’t be actual or Net 3.0 however crypto currencies that don’t do something, I don’t perceive why persons are spending time.
Dimon has lengthy been a critic of bitcoin and crypto. In September, he informed Congress that crypto tokens like bitcoin are “decentralized Ponzi schemes.” He beforehand mentioned bitcoin is nugatory and has warned folks to watch out when investing in cryptocurrencies citing that they haven’t any intrinsic worth. In Might final yr, he personally suggested buyers to “keep away” from cryptocurrency. Whereas Dimon is skeptical of crypto, his funding financial institution, JPMorgan, has been providing quite a few crypto investments to shoppers.
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