JPMorgan Calls Cryptocurrency As A Decentralized Ponzi Scheme

Crypto left JPMorgan Investment Bank. (Photo; Doc. Reuters/Lucy Nicholson)

JAKARTA – The multinational investment bank based in New York, USA, JPMorgan Chase & Co. recently issued a negative statement against cryptocurrencies as a whole. JPMorgan states that Bitcoin (BTC) and other cryptocurrencies are “decentralized Ponzi schemes.” The statement was made by the CEO of JPMorgan Chas & Co., Jamie Dimon.

Contrary to the view of the CEO of JPMorgan, the investment bank actually provides crypto investment services to its customers. Furthermore, the bank also plans to offer these crypto options despite the crypto market experiencing a significant decline in the bear market phase this year. This downturn has reduced investors' interest in entering the market.

Apart from being the CEO of JPMorgan, Jamie Dimon is also known as a critic of cryptocurrencies in general, and Bitcoin in particular. In recent years, Dimon has labeled digital assets as “worthless” assets. He also warned investors to stay away from cryptocurrencies.

In a recent appearance, the 66-year-old banker emphasized his disdainful stance, calling Bitcoina and other cryptocurrencies “decentralized Ponzi schemes.”

“I am very skeptical of crypto tokens, which you call currency, like bitcoin. They are decentralized Ponzi schemes,” said Dimon.

The CEO of JPMorgan Chase explained the reasons for his dislike of cryptocurrencies. According to him, cryptocurrencies are used by criminals to carry out their illicit operations, including money laundering and sex trafficking.

The Advantages of Blockchain Technology Underlying Cryptocurrencies

Although cryptocurrencies have received accusations from various circles, especially from the banking sector, some evidence points to something else, namely blockchain technology.

Because cryptocurrencies use blockchain technology, which functions like a digital ledger that records every transaction transparently and cannot be changed or edited by any party. That means, anyone can track the flow of funds in crypto as long as they have internet access.

Meanwhile, cash is still the most widely used medium of exchange by criminals for drug transactions and other illegal activities. According to research, about 34 percent to 39 percent of all currency in circulation has been used for illegal activities.

Despite the negative views of the JPMorgan CEO who criticizes cryptocurrencies, he is apparently not a critic of blockchain technology and stablecoins. According to him, all of this can provide benefits for the development of the financial system. Previously, Dimon had praised blockchain technology by saying that it is “real” and can be “used both publicly and privately, permitted or not,” said investment bank executive JPMorgan Chase.