This is not the first time Dimon has made such remarks, as he has been a vocal critic of cryptocurrencies for some time, having referred to digital currencies as “Ponzi schemes” and a “fraud,” according to the report.
Dimon’s latest criticism of the crypto industry comes at a time when several hacks and scandals have plagued the market, the report said. There has been increased scrutiny from U.S. regulators and lawmakers, particularly after the unwinding of FTX, Sam Bankman-Fried’s cryptocurrency platform.
Sen. Elizabeth Warren, D-Mass., found common ground with Dimon and other banking leaders during the hearing, per the report. Warren highlighted the potential risks associated with cryptocurrencies, particularly in terms of money laundering and financing terrorism. She called for anti-money laundering (AML) rules that banks follow to be extended to digital assets. Dimon and other CEOs agreed with Warren’s stance, per the report.
While he criticizes cryptocurrencies, Dimon’s views on blockchain technology differ, the report said. JPMorgan has actively embraced blockchain technology for various projects, including the development of its proprietary stablecoin, JPM Coin. The bank has projected that JPM Coin could handle up to $10 billion in daily transactions within the next two years.
It was reported in October that JPM Coin currently handles $1 billion in daily transactions. The digital token lets the banking giant’s wholesale clients make dollar and euro payments over a private blockchain network.
Dimon’s criticism of the cryptocurrency industry comes as digital asset companies are spending record amounts of cash to advance their cause in Washington.
Companies in the sector spent $18.9 million on lobbying during the first three quarters — up from $16.1 million in 2022 — as they have been trying to restore their reputations in the wake of a number of scandals.
The industry has also faced intensifying scrutiny from federal regulators like the Securities and Exchange Commission.