Jamie Dimon reiterated his negative stance on Bitcoin, saying it was “the fool’s gold of the future”. He also said that the entire cryptocurrency industry will inevitably be subject to a regulatory framework.
Bitcoin has no “intrinsic value”
JPMorgan Chase & Co.’s chief executive officer – Jamie Dimon – is definitely a cryptocurrency critic. In a recent interview for HBO, he gave his reasons for opposing the asset class.
He scratched the hot topic about China’s total ban on Bitcoin mining and trading. Dimon believes that this move proved that BTC is illegal. Hence, people shouldn’t consider it digital gold:
“I’ve always believed that somewhere it would become as illegal as China made it illegal, so I think it’s a bit of stupid gold.”
Jamie Dimon, source: Bloomberg
With this opinion on gold and bitcoin, Dimon stands in contrast to numerous other prominent names who have supported the cryptocurrency because of its similarities to the yellow metal, but also because of some of its advantages.
Some of them include Michael Saylor, Steve Wozniak, and Chamath Palihapitiya – all of whom thought Bitcoin was a better asset than gold because of its known maximum cap and digital presence.
JPMorgan’s CEO also urged the U.S. guard dogs to regulate Bitcoin, believing that the leading digital asset is mainly used in illegal activities:
“Yes … when people use it for tax evasion, sex trafficking, and ransomware, it gets regulated whether they like it or not.” So it’s not a moral statement. It is a statement of fact. “
With that, Dimon has joined the list of people who claim that Bitcoin is mainly used for illegal transactions. This assumption is not exactly correct, however, as numerous reports have claimed that cash remains the most widely used payment method for malicious actors. In addition, BTC’s blockchain is transparent as all transactions are recorded on it.
JPMorgan jumped on the crypto bandwagon
Despite its CEO’s hostile stance towards cryptocurrencies, multinational investment bank JPMorgan Chase & Co. has recently started offering digital asset services to its clients.
In late July, Mary Callahan Erdoes – the institute’s director of asset and wealth management – noted that most of the bank’s users view Bitcoin as an asset class. They have also shown a growing demand for crypto-related opportunities and the bank would work in that direction.
“Many of our clients say, ‘This is an asset class and I want to invest,’ and our job is to help them get their money where they want to invest.”
Shortly thereafter, America’s largest bank gave its institutional clients access to six cryptocurrency funds. One of them – a new Bitcoin fund from digital asset company NYDIG – is only available to private banking customers.
Selected image courtesy of AmericanBanker
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