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Source: Сointеlеgrаph

Testifying before U.S. (USA) lawmakers, JPMorgan Chase CEO Jamie Dimon described himself as a “big skeptic” about “crypto tokens that you call a currency like bitcoin”, calling them “decentralized Ponzi schemes”.

Dimon was asked what is holding him back from being more active in the crypto space during a supervisory hearing held by the House Financial Services Committee on Sept. 21.

Dimon emphasized that he sees value in blockchain, decentralized finance (DeFi), ledgers, smart contracts, and “tokens that do things,” but then proceeded to criticize crypto tokens that are identified as currencies.

Asked about his thoughts on the US stablecoin bill, Dimon said that he thinks there is nothing wrong with stablecoins being properly regulated and that regulation should be similar to what money market funds are subject to.

Dimon once called Bitcoin a “scam” and has repeatedly stated in the past that he has no interest in supporting the sector on a personal level. He has occasionally softened his stance on crypto, once emphasizing that it can be used in important cases such as cross-border payments.

Despite Dimon’s views on the cryptocurrency space, JPMorgan is moving into the blockchain technology space. In October 2020, the financial giant launched its own stablecoin – JPM Coin – the first U.S. bank-backed cryptocurrency that was aimed at making settlements more efficient.

A week after the release of the coin, the bank launched a new business unit dedicated to blockchain technology called Onyx. Since then, the Onyx platform has been used by large institutional clients for 24/7 global payments.

JPMorgan also became the first major bank in the Metaverse after opening its virtual lounge in the blockchain-based world of Decentraland in February. The move follows a report released by the firm that cites Metaverse as a $1 trillion opportunity.

JPMorgan is hiring new hires to advance in blockchain and crypto, most recently announcing on Sept. 9 that it has hired former Microsoft chief executive Tahrim Kamptom as a senior executive director of payments. Kamptom is expected to help JPMorgan explore blockchain technology, given that his LinkedIn bio shows he has been working on crypto-related payment methods.

Related: ‘Most cryptocurrencies are still junk’ and has no precedent – Head of blockchain at JPMorgan

During the hearing, the lawmakers also asked the heads of other leading US banks if they had plans to fund cryptocurrency mining. Citigroup CEO Jane Fraser, Bank of America CEO Brian Moynihan, and Wells Fargo CEO Charles Scharf suggested that their banks had no intention of doing so.

Source: Сointеlеgrаph

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