During congressional testimony on Wednesday, September 21, JPMorgan chief Jamie Dimon as soon as once more made a pointy assault on digital belongings. “I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. They are decentralized Ponzi schemes,” he added.
This just isn’t the primary time that Jamie Dimon has been attacking crypto in robust phrases. Back in the course of the 2017 bull run, Dimon additionally known as Bitcoin a fraud, nevertheless, he later mentioned that he regretted making these feedback.
Interestingly, JPMorgan continues to supply crypto companies to its institutional purchasers. However, Dimon nonetheless continued to imagine them to be ineffective. Although Dimon holds robust 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 House of Financial Services Committee proposed legislation that may again algorithmic stablecoins just like the TerraUSD.
The fall of the Terra ecosystem and its native UST stablecoin has drawn regulatory consideration worldwide. The nature 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. In truth, 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. As 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.
In the previous, Jamie Dimon had acknowledged the existence of decentralized finance (DeFi) which might doubtlessly substitute banks sooner or later.
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