Jamie Dimon, the chief executive of JP Morgan Chase, has expressed his bearish stance concerning Bitcoin and the entire crypto market. The CEO confessed that he would prioritize shutting down the crypto industry if given a government role.
Reflecting on the recent shocking events, the executive stated that the crypto industry has become a hiding place for criminals, drug dealers, and tax evaders. Addressing the Senate Banking Committee held on December 6 Dimon diverted the discussion from the banking and housing affairs to deliberate the inherent risks of emerging technologies such as crypto assets.
JP Morgan CEO Oppose Crypto
The official told the members present that he has always been against crypto, Bitcoin (BTC), and other developments in the digital sector. His anti-crypto spirit heated up after Massachusetts senator Elizabeth Warren asked Dimon why the notorious terrorists, drug traffickers, and illicit groups are using crypto to conduct their unlawful activities.
Based on his experience in financial and banking matters, the 67-year-old American investor explained that digital asset features allow users to transfer funds instantaneously. He added that the anonymous nature of digital assets has made crypto a haven for criminals.
In his address, Dimon admitted that the legal and compliance features of Bitcoin and other crypto assets must be reviewed. The official referred to the recent events where crypto has been used as a hideout for criminals.
Dimon argued that with the changes in the financial landscape, emerging issues required regulators to review and address the potential risk of digital assets. He regretted that the emerging trends in the crypto sector have supported the rise of shadow banking, which undermines the growth of the conventional banking system.
Citing the emerging trends, the CEO lamented that it supports the unlawful use of financial products.
Jamie Dimon supports Senator Elizabeth Warren’s Anti-Crypto Move
In his earlier post, Dimon described Bitcoin as a fraud when crypto was still a new concept. The executive has consistently warned the consumers of the risk associated with crypto assets.
Despite his anti-crypto campaigns, Wall Street’s key investors and market makers heed from his advice and invested measurable assets in cryptos.
In 2017, Dimon’s daughter was among the investors with a measurable amount of crypto holdings. Following the unprecedented crypto markets, Dimon’s daughter’s crypto investment went wrong, exposing her to substantial losses. At that time, the father condemned his daughter for investing in Bitcoin.
In a subsequent report, the father of the disgraced crypto investor began questioning whether the supply of Bitcoin would reach 21 million. Dimon became more pessimistic about the Bitcoin supply reaching the 21 million supply.
Besides the risk linked to crypto, especially Bitcoin, the CEO was pleased to state that blockchain and decentralized finance (DeFi) have proved benefitial to JP Morgan.
Interestingly from the recent achievements Dimon confirmed that launching JPM Coin has stimulated business growth and attracted new clients to the bank. He recognized the bank’s pivotal role in creating a digital coin centered on the permissioned blockchain network.
JP Morgan Describes Blockchain as a Useful Tool
A recent report from JP Morgan demonstrated that the daily supply of JPM Coin reached $1 billion. The exciting growth of JPM Coin has compelled the bank’s Onyx division to explore practical strategies to migrate traditional finance (TradFi) to the blockchain ecosystem.
The Wall Street critic believed blockchain technology was more beneficial than crypto assets. After comparing the benefits and shortcomings of the two technologies, Dimon observed that blockchain was a helpful tool.
The JP Morgan CEO speech created heated debates on the X platform, where the crypto proponents vehemently opposed his anti-crypto move. Upon close examination of the regulation matters, an X user slammed Dimon, for the non compliance of the bank. He argued that JP Morgan has been among the financial institutions penalized for breaching the existing law.
Another X user denied claims that crypto and Bitcoin have been a hiding place for criminals. The anonymous X user argued that Bitcoin and most cryptocurrencies run through a transparent ledger where transactions are easy to trace.
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