JP Morgan CEO calls Bitcoin ‘Ponzi Scheme’ despite serving as Authorized Participant for BlackRock ETF

JPMorgan Chase CEO Jamie Dimon reiterated his strong skepticism toward Bitcoin on April 18, calling it a “fraud” and a “Ponzi scheme” despite the lender’s involvement in BlackRock’s spot BTC exchange-traded fund (ETF).

Dimon, who has a history of critiquing the digital currency, made the latest comments during an interview on Bloomberg TV, where he expressed doubts about Bitcoin’s utility and legitimacy as a form of money.

He said:

“Bitcoin and similar cryptocurrencies are simply not functional as currencies. If they think they’re a currency, there’s no hope for it. It’s essentially a Ponzi scheme dressed up as tech innovation.”

Despite the JP Morgan CEO’s long-standing criticism of Bitcoin, the lender has been serving as an Authorized Participant for BTC ETFs since their launch and has been involved in several blockchain-based projects for numerous years.

Dimon acknowledged the potential of certain aspects of blockchain technology during the interview, particularly those that enable smart contracts. He said:

“There are elements within the broader crypto sector, such as those facilitating smart contracts and blockchain applications, that do present real value.”

The veteran banker’s comments come amid a backdrop of fluctuating crypto values, with Bitcoin having recently rebounded to trade around the $63,000 mark, significantly up from its lows but well below its all-time high.

Growth despite criticism

Dimon has been vocal about his concerns with cryptocurrencies in the past, citing their potential to enable illegal activities such as money laundering, fraud, and tax evasion due to their anonymity and lack of regulation.

He has previously called for more stringent oversight to prevent the financial crimes associated with cryptocurrencies.

Despite Dimon’s critical stance over the years, the crypto market has continued to grow, with Bitcoin’s market capitalization recently surpassing $1.2 trillion. His comments reflect ongoing debates within the financial community about the viability and safety of investments in cryptocurrencies.

Industry analysts suggest that while skepticism like Dimon’s is not uncommon among traditional financial leaders, the innovation and adoption of blockchain technology show no signs of slowing down. As discussions about the regulatory framework continue, the future of cryptocurrencies remains a hotly contested topic across global financial markets.

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