JPMorgan President Says Cryptocurrencies Are “Irrelevant”

In an interview with CNBC, published this Monday (24), Daniel Pinto commented on the rise in US interest rates, recession, black swans and of course cryptocurrencies.

It is striking that the chairman of JPMorgan, the world’s largest investment bank by turnover, has a strong opinion on all of the above topics. On cryptocurrencies, for example, Pinto believes they are small and irrelevant.

In any case, it is worth remembering that the bank has investments in the area, such as in transaction tracking companies and even through its own cryptocurrency, JPMCoin.

Fed must keep raising rates, says JPMorgan chairman

While some players think the Fed’s monetary policy could send the economy into recession, Daniel Pinto points out that a rate hike is necessary.

“That’s why when people say ‘the Fed is too’ hawkish‘, I do not agree”said Daniel Pinto, president of JPMorgan, “I think it’s very important to put inflation back into a box. If it causes a slightly deeper recession for a period of time, that’s the price we have to pay.”

The latest data indicates that US inflation is still at 8.2% per annum, after a monthly increase of 0.4% in September. However, the Fed is struggling to hit 2% a year, a target that is still a long way off.

The executive then points out that the markets have not yet bottomed out, as Pinto says interest rates should rise to 5%, which will further wear down the economy.

On black swans, that is, events that are so rare that they are not even considered, the president of JPMorgan emphasized geopolitics, that is, wars, but he hopes that this does not happen.

Cryptocurrencies Are Not Relevant, Says Daniel Pinto

When it comes to cryptocurrencies, the opinion of the president of JPMorgan is similar to that of Jamie Dimon, CEO of the same bank. Although Dimon classifies them as Ponzi schemes, Pinto is less controversial, but still critical.

“The reality is that the current form of cryptocurrencies has become a small asset class that is a bit irrelevant in the set of things.”

Still, it’s worth noting that Bitcoin has a market cap of BRL 1.98 trillion, above JPMorgan itself, which is valued at BRL 1.9 trillion. We also do not mention any other cryptos, which would bring this number to R$5 trillion.

Bitcoin is bigger than JPMorgan, but the president believes that cryptocurrencies are a bit irrelevant.

Finally, Pinto stresses that both the technology and concepts behind cryptocurrencies are here to stay, but today, in their current form, they are not a reality.

Finally, it is worth noting that the bank invested in a cryptocurrency tracking company in May of this year. In addition, they also created their own cryptocurrency, JPMCoin.

Source: Live Coins