JP Morgan CEO Jamie Dimon calls Bitcoin ‘worthless’, says it will be regulated by government

[ad_1]

You are reading Entrepreneur United States, an international Entrepreneur Media franchise. This story originally appeared on The Epoch Times

JP Morgan Chairman and CEO Jamie Dimon called Bitcoin worthless and said governments would regulate cryptocurrencies soon.

Dimon has been outspoken about digital currencies in the past, previously telling Axios that they have no intrinsic value and that regulators will regulate them thoroughly.

At a virtual event hosted by the Institute of International Finance on Monday, Dimon doubled down on his previous comments, saying: I personally think bitcoin is worthless.

In February 2019, JPMorgan became the first global bank to design a network to facilitate instant payments using blockchain technology during the deployment of JPM Coin.

According to the investment bank, JPM Coin allows participating JP Morgan clients to transfer US dollars held on deposit with JP Morgan, and facilitates the movement of value in real time, helping to resolve the common barriers of traditional cross-border payments.

In October 2020, the finance department created a new unit for blockchain projects after announcing that digital currency was being used commercially by a customer. Just a few months ago, in August, it started giving its wealth management clients access to six crypto funds, CNBC reported.

I don’t want to be a spokesperson, I don’t care. It doesn’t make any difference to me, Dimon said on Monday. Our clients are adults. They do not agree. This is what makes the markets. So if they want to have access to buy bitcoin yourself, we can’t keep it, but we can give them legitimate access, as clean as possible.

The CEO also said he believes governments will soon start regulating digital currency for a host of reasons, including for tax purposes.

No matter what we think about it, [the] the government will regulate it. They’re going to regulate it for purposes (anti-money laundering), for purposes (bank secrecy law), for tax purposes, Dimon said.

Last week, Securities and Exchange Commission (SEC) Chairman Gary Gensler told Congress his agency would not follow China’s lead in implementing a cryptocurrency ban, but expressed concern about the lack of regulation.

China’s central bank last month declared all cryptocurrency-related transactions illegal while promising to suppress the virtual currency market.

Cryptocurrencies, including Bitcoin and Tether, are among those specifically cited as not being fiat currency and cannot be released, the People’s Bank of China said in a statement, translated by CNBC.

I am technologically neutral. I think this technology [cryptocurrency] has been and can continue to be a catalyst for change, but technologies don’t last long if they stay outside the regulatory framework, Gensler told Congress.

I think the SEC, together with the CFTC [Commodity Futures Trading Commission] and others, can put in place more robust crypto-finance surveillance and investor protection.

However, Gensler noted that at present, much of the crypto field does not operate within regulatory frameworks that protect investors and consumers, guard against illicit activity, and ensure financial stability.

He also acknowledged that there is currently insufficient investor protection when it comes to funding, issuing, trading or lending crypto.

Frankly, right now it’s more like the Old West or the old world of the suspicious buyer that existed before securities laws were passed. This asset class is rife with frauds, scams and abuse in some applications. We can do better, Gensler said.

Although there are concerns about the regulation of cryptocurrency, countries such as Ukraine are embracing the virtual currency market. Earlier this month, Ukraine became the latest country to legalize cryptocurrency and other digital assets.

Meanwhile, El Salvador has also adopted Bitcoin as legal tender alongside the US dollar, in hopes that it will boost financial inclusion in El Salvador, where around 70% of citizens do not have access to traditional financial services.

Bitcoin trading showed no immediate reaction to Dimons’ comments. The cryptocurrency was up 1.59% on Tuesday.

Reuters contributed to this report.

By Katabella Roberts

Katabella Roberts is a journalist currently based in Turkey. She covers current affairs and business for The Epoch Times, focusing primarily on the United States.

[ad_2]