JPMorgan Chase CEO Jamie Dimon alluded to himself as a significant critic of crypto tokens when speaking before US Congress, describing them as “decentralized Ponzi schemes.”
During a House Financial Services Committee oversight hearing on September 21, Dimon was asked what prevented him from becoming more involved in the crypto market, according to Bloomberg.
Jamie Dimon stated that he finds value in blockchain, decentralized finance (DeFi), ledgers, smart contracts, and “tokens that do something,” but then went on to criticize cryptocurrency tokens that identify as currencies.
When asked about the proposed US stablecoin bill, he stated that there is nothing wrong with properly regulated stablecoins, and that the regulation should be comparable to what money market funds are subject to.
House Financial Services Committee Chairwoman Maxine Waters and Ranking Member Patrick McHenry have been working to reach an agreement on stablecoin legislation. Under the latest version of the bill, it would be illegal to issue or create new “endogenously collateralized stablecoins” such as those similar to TerraUSD, the algorithmic stablecoin that collapsed earlier this year.
While Dimon has been a loud opponent of Bitcoin, his company has been focused on adopting blockchain for financial services.
JPMorgan conducts intraday repurchase agreements using its own blockchain and token, JPM Coin, allowing other financial institutions to make short-term loans with high-quality collateral. In February, JPMorgan was also the first Wall Street bank to establish a presence in the metaverse.
JPMorgan has been employing new employees to expand its presence in the blockchain and cryptocurrency field, most recently announcing on September 9 that it has recruited former Microsoft executive Tahreem Kamptom as its senior payments executive.
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