JPMorgan Chase CEO Jamie Dimon says crypto tokens are like pet rocks. The chief additionally believes crypto regulation must be strengthened, stating: “The regulators who beat up on banks ought to possibly focus slightly 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 trade 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 taking place within the financial 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 individuals are hyping these items up.
Pet rocks are simply rocks in customized cardboard packing containers, marketed as reside rocks in 1975. Over 1 million pet rocks have 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 government opined: “I don’t suppose she meant a Lehman second … Crypto is price a trillion {dollars}.”
Dimon additionally believes that crypto regulation must 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} at present, and we’re not even certain that may be a actual market by the way in which, that 20 to 30 billion of ransomware a 12 months that we find out about, 20 to 30 billion of trade prices that we find out about, plenty of AML anti-terrorism financing, tax avoidance, intercourse trafficking, through which what why we permit these items to happen,” he continued, emphasizing:
I believe, , the regulators who beat up on banks ought to possibly focus slightly extra on crypto.
Whereas downplaying the importance of cryptocurrency, Dimon reiterated his perception in blockchain know-how, stating:
That doesn’t imply blockchain will not be actual. That doesn’t imply sensible contracts gained’t be actual or Internet 3.0 however crypto currencies that don’t do something, I don’t perceive why individuals are spending time.
Dimon has lengthy been a critic of bitcoin and crypto. In September, he advised Congress that crypto tokens like bitcoin are “decentralized Ponzi schemes.” He beforehand mentioned bitcoin is worthless and has warned individuals to watch out when investing in cryptocurrencies citing that they’ve no intrinsic value. In Could final 12 months, he personally suggested traders to “stay away” from cryptocurrency. Whereas Dimon is skeptical of crypto, his funding financial institution, JPMorgan, has been offering quite a few crypto investments to shoppers.
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