JPMorgan CEO calls bitcoin a “hyped-up fraud”

Jamie Dimon also commented on the collapse of FTX, calling the exchange a “decentralized Ponzi scheme”

20.01.2023 - 09:40

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2 min

What’s new? Jamie Dimon, CEO of the financial holding company JPMorgan, shared his thoughts about cryptocurrencies on CNBC’s Squawk Box program. He said that bitcoin is a “hyped-up fraud,” adding that the asset is different from blockchain technology. The latter, he said, is used to move information and money around. So it is the kind of accounting system that could be deployed, Dimon added.

“Bitcoin itself is a hyped-up fraud,” says @jpmorgan CEO Jamie Dimon. “Crypto is a decentralized Ponzi scheme…It’s a pet rock.” pic.twitter.com/9KQfckty8f
— Squawk Box (@SquawkCNBC) January 19, 2023

What else did Dimon say? The head of JPMorgan said that he was not surprised by the collapse of the FTX cryptocurrency exchange, which he called a “decentralized Ponzi scheme.” According to Dimon, “the hype around this thing [the platform’s collapse] has been extraordinary.” He also added that “crypto itself doesn’t do anything.”

In September 2022, Dimon already referred to cryptocurrencies as decentralized Ponzi schemes, while emphasizing the value of blockchain, DeFi, and smart contracts. Back in April, he noted that these technologies could improve various aspects of banking.

In December, Jared Gross, Jared Gross, head of institutional portfolio strategy at JPMorgan, said that institutional investors were not interested in investing in digital assets because of the high volatility of the market. At the same time, in November, the holding company registered the cryptocurrency wallet trademark “J.P. MORGAN WALLET.”

To learn more about how prominent businessmen criticize cryptocurrencies, see GetBlock Magazine’s article.

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