Jamie Dimon, the powerful CEO of JPMorgan Chase, has once again launched a verbal attack on cryptocurrencies in a fiery declaration that reverberated throughout the financial landscape.
Dimon, who is known for speaking his mind, bluntly called for a total ban on digital currencies, linking them to criminal activity.
The CEO did not hold back on speaking at the Senate hearing along with seven other heads of large banks.
“If I were the government, I would shut it down.”
In response to a question from Senator Elizabeth Warren, he said he was firmly opposed to all forms of cryptocurrency, including Bitcoin.
Dimon expressed concern that terrorists, drug dealers and rogue states would use it as a means of financing it, and vowed to shut it down if he took responsibility.
Even though Dimon’s bank is deeply involved in blockchain, the technology that underpins the $1.6 trillion cryptocurrency industry, his comments are the latest attack on the industry.
Dimon attacks cryptocurrency
In previous remarks, Dimon referred to Bitcoin as an “overhyped scam,” but later walked back this term. Moreover, he likened it to a “pet rock.”
Despite later admitting regret, he continued to use the term “decentralized Ponzi scheme” to describe Bitcoin and other digital currencies even after his previous tirade.
Dimon and other bank leaders, including Bank of America Corp.’s Brian Moynihan, have insisted their institutions have measures in place to prevent terrorists and other criminals from taking advantage of them.
Warren, by contrast, advocated for an expansion of anti-money laundering regulations that banks currently have in place for digital assets, particularly the cryptocurrency market. All CEOs expressed agreement.
As of today, the market cap of cryptocurrencies stood at $1.55 trillion. Chart: TradingView.com
JPMorgan recently completed its first blockchain-based collateral settlement through a deal with BlackRock and Barclays in October, according to sources.
With JPM Coin, a proprietary stablecoin that allows users to make blockchain-based payments, JPMorgan has been a pioneer in this space.
JPMorgan said that within the next two years, the token could handle up to $10 billion in daily transactions, up from about $1 billion currently.
According to market rating firm CoinMarketCap, the price of Bitcoin, the world’s largest cryptocurrency by market value, has risen more than 150% this year to over $44,000, despite calls for a government crackdown.
Senators and bankers unite over cryptocurrency criticism
Warren used the session to join forces with Republicans and prominent bankers to criticize the cryptocurrency sector.
Naturally, Dimon has no government authority and cannot independently initiate a cryptocurrency ban.
Because he is the representative of a private financial company, he can only offer suggestions and opinions. He is unable to enact significant policy changes.
Nonetheless, it demonstrated an unusual convergence of interests between the cryptocurrency industry and the Massachusetts senator, a long-time enemy of banks who argues that cryptocurrencies support illicit transactions.
The price of Bitcoin, the world’s largest and most popular cryptocurrency, has risen more than 150% this year and surpassed the $44,000 barrier on Wednesday despite calls for a government shutdown, according to the most recent market data.
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