JPMorgan CEO Called Bitcoin and Other Cryptos “Ponzi Schemes”

JPMorgan CEO Called Bitcoin and Other Cryptos “Ponzi Schemes"
  • JPMorgan CEO Jamie Dimon stated he has a major skeptic of crypto tokens.
  • Jamie Dimon advised lawmakers to “be prepared for the worst.”

Jamie Dimon, the CEO of JPMorgan Chase & Co., stated in a congressional committee on Wednesday that, Cryptocurrencies are Ponzi schemes. Jamie Dimon has long been skeptical of cryptocurrencies. He has repeatedly stated that he is not a huge supporter of Bitcoin. 

JPMorgan Chase & Co. is one of the world’s top financial services providers, including cryptocurrency. Its operations and assets worldwide are worth more than $2.6 trillion. When a US senator brought up the executive’s past criticism of cryptocurrency in the committee, Jamie Dimon didn’t hold back.

Jamie Dimon stated that;

I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin. These Ponzi schemes are decentralized.

Furthermore, In 2017, Dimon called Bitcoin a fraud, eventually, he admitted and regretted the statements.  Again in October, Jamie claimed it was useless but promised to follow clients’ requests. More recently, he declared that decentralized finance, in which algorithms take the place of banks, is “real.”

Jamie Dimon Warns Lawmakers

The biggest concern would begin a recession following the Federal Reserve hikes rates by 75 basis points, rather than the 100 basis point hike. The standard interest rate set by the Federal Reserve will rise from its current range of 2.25% to 2.50% to 3.0% to 3.25%. 

JPMorgan CEO Jamie Dimon advised lawmakers to “be prepared for the worst” due to the Fed’s 75 basis point rate increase. Also, in June, Dimon warned investors to prepare for an economic “hurricane” during a business conference.

The Fed’s third rate increase in a row follows an unexpected increase in the monthly inflation rate last month, which suggests that aggressive rate hikes will continue for longer than expected.

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