While testifying before U.S. lawmakers, JPMorgan Chase CEO Jamie Dimon described himself as a “major skeptic” about “crypto tokens, you call currencies like bitcoin,” calling them “decentralized Ponzi schemes.”
Dimon was asked what is keeping him from becoming more active in the crypto space during an oversight hearing held by the House Financial Services Committee on Wednesday.
Dimon emphasized that he sees value in blockchain, decentralized finance (DeFi), ledgers, smart contracts, and “tokens that do things,” but then went on to lambaste crypto tokens that identify as currencies.
When asked for his opinion on the draft U.S. stablecoin law, Dimon said he believes there is nothing wrong with properly regulated stablecoins and that regulation should be similar to what money market funds are subject to.
Dimon has once called Bitcoin (BTC) a “scam” and has reiterated 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 serve important use cases in times of cross-border payments.
Despite Dimon’s views on the cryptocurrency space, JPMorgan has ventured into the blockchain technology space. The financial giant launched its own internal stablecoin – JPM Coin – in October 2020, the first cryptocurrency backed by a US bank, aimed at increasing settlement efficiency.
A week after the coin’s launch, the bank launched a new division 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 Decentraland in February. The move followed a report released by the company that described the Metaverse as a $1 trillion opportunity.
JPMorgan has hired new staff to move into the blockchain and crypto space, most recently announcing on Sept. 9 that it had hired former Microsoft executive Tahreem Kamptom as its senior payments executive. Kamptom is expected to help JPMorgan research blockchain technology as his Linkedin bio reveals that he has worked on crypto-related payment methods.
Related: “Most Cryptos Are Still Garbage” And Missing One Use Case – JPMorgan Blockchain Head
During the hearing, lawmakers also asked other top U.S. bank CEOs if they had any plans to fund crypto mining. Citigroup CEO Jane Fraser, Bank of America CEO Brian Moynihan and Wells Fargo CEO Charles Scharf all indicated their banks had no intention of doing so.