HomeCrypto“Retirees, grandmothers, low-income people” have been harmed by cryptocurrencies
“Retirees, grandmothers, low-income people” have been harmed by cryptocurrencies
January 10, 2023
JPMorgan (JPM) Chief Executive Officer Jamie Dimon doesn’t mince words when it comes to his views on cryptocurrencies.
The Wall Street chief, who famously called digital tokens “decentralized Ponzi schemes” in a regulatory hearing in September, reiterated his criticisms of cryptocurrencies again during an interview with Fox Business Network.
“I called it a decentralized Ponzi scheme because people were just hyping it – hyping it and hyping it – and they’re going to write tons of books about it, the money that’s been stolen from it, what people knew and didn’t know,” he said when asked what lessons have been learned about cryptocurrencies since the FTX crash.
Dimon, in the interview aired on Tuesday, as well as in the past, differentiated his skepticism towards cryptocurrencies from his views on blockchain technology as a form of accelerating financial transactions. His bank has been working on building its own blockchain and custom token, JPM Coin, which aims to facilitate customer payment transfers.
Meanwhile, he said cryptocurrencies had made people “hysterical” and that it was the government’s responsibility to protect investors.
“Many people got hurt [by crypto]”, Dimon said. “These were retirees, grandmothers, low-income people, and it was a shame.”
The collapse of the fallen cryptocurrency exchange is estimated to have wiped out $9 billion in cryptocurrency investments, according to data from blockchain analytics firm Chainalysis.
“It should have been immediately put into some sort of regulatory framework so that there was some investor protection,” he said, adding that regulators were starting to propose safeguards, but now “the barn door has closed.” open” to do so.
In a separate interview with CNBC last month, Dimon likened crypto tokens to “pet rocks.”
“By the way, I don’t care, so I hate talking about it,” Dimon said in an interview with Fox Business on Tuesday.
Alexandra Semenova is a reporter at Yahoo Finance. Follow her on Twitter @alexandraandnyc
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