An ironic state of things at the world’s largest bank has left investors perplexed about whom to believe.
- In his congressional testimony, JP Morgan Chase CEO Jamie Dimon has warned the U.S. House Financial Services Committee about Bitcoin.
- Dimon believes that cryptocurrencies will never come close to fiat currency or gold.
- Despite the CEO’s apprehensions, the banking giant does help wealthy crypto clients like Coinbase Inc. and Gemini Trust Co manage their Bitcoin funds.
- JP Morgan Chase employees are also only embracing bitcoin and cryptocurrency trading rapidly.
The CEO of JP Morgan Chase, Jamie Dimon, has yet again expressed his stern disapproval for cryptocurrency on Thursday during a Congressional Testimony to the U.S. House Financial Services Committee. Dimon warned about bitcoin and made it clear that cryptocurrencies can never come close to fiat currency or gold.
“My own personal advice to people is: stay away from it. That does not mean the clients don’t want it,”JP Morgan Chase CEO Jamie Dimon
Dimon said. “This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it.” Dimon said that his opinions about cryptocurrencies, excluding blockchain technology and stable coins, are personal and do not dictate. JP Morgan’s decision to whether embrace Decentralized Finance (DeFi) or not. To quote the CEO of the banking giant, “Something that’s not supported by anything, I do not believe has much value.”
It doesn’t end, here. JP Morgan’s boss protracted his cynicism further by suggesting the U.S. government crackdown on Bitcoin trading. Dimon believes that the industry is already worth more than $2 trillion and it is about time that the authorities step in to set a regulatory framework around it.
JP Morgan’s ironic relationship with cryptocurrency
This is not the first time that Jamie Dimon has expressed his resentment towards Bitcoin. The only change that appears a few years down the lines is his choice of words, which have become less relenting. In 2017, the CEO of JP Morgan called bitcoin a “fraud” and warned investors that it will blow up soon.
Dimon called the biggest cryptocurrency “worse than tulip bulbs”, predicting that “it isn’t going to work”.
He didn’t stop there. While referring to the employees of JP Morgan, Jamie Dimon said, “I would fire them in a second, for two reasons: It is against our rules, and they are stupid, and both are dangerous.”
However, four years down the line, Dimon and his clients and employees appear to be standing on the two different ends of the opinion. Employees are not only embracing bitcoin and cryptocurrency trading rapidly, they are also helping their wealthy clients manage their Bitcoin funds. Among its esteemed list of banking clients are the two moguls of the cryptocurrency, Coinbase Inc. and Gemini Trust Co.
This move by the American banking giant cleared the air of confusion for a few other Wall Street banks that were grappling with the dilemma of whether to offer cryptocurrency management to their clients or not. After sitting on the fence or occasionally slamming the potential of Bitcoin, other banking behemoths like Morgan Stanley and Goldman Sachs have also taken big strides in the direction of approval.
Earlier last month, JP Morgan also unveiled its plan to offer debt to cryptocurrency-linked companies. This was shortly after it issued a report warning central banks of falling behind in digital finance.
The U.S. bank does not invest in cryptocurrency directly. However, it introduced a debt instrument named JP Morgan Cryptocurrency Exposure Basket for companies directly or indirectly linked to cryptocurrency. Nevertheless, while banks appear to accept decentralized financing, their leaderships continue to deny any possibility that crypto is the future.