When asked about the fallout from FTX’s bankruptcy, Jamie Dimon was not interested in the matter. “Cryptocurrencies are a show of their own, you spend a lot of time on them”JPMorgan’s CEO replied to CNBC journalists.
Known as a major enemy of cryptocurrencies, having already classified them as a Ponzi scheme, Dimon attacked the industry again this Tuesday (6).
What caught the eye, however, was the billionaire’s creativity in answering a question he has already answered several times, with no indication that he will change his mind.
“I made my point perfectly clear, crypto tokens are like pet pebbles.”
Jamie Dimon believes in the technology behind cryptocurrencies
Then the CEO of one of the largest banks in the world explains that while he doesn’t believe in cryptocurrencies, the technology behind it is amazing. Like his criticism, such thinking is nothing new.
“It doesn’t mean blockchain isn’t real, it doesn’t mean smart contracts won’t be real, or web 3.0. But I don’t understand cryptocurrencies that do nothing.”
Another point raised by Dimon is related to the use of cryptocurrencies by criminals. That is why the management took the opportunity to ask for market regulation again.
“Bitcoin is worth less than $1 trillion today. There’s 20 to 30 billion in ransomware, 20 to 30 billion in exchange fees, a lot [envolvimento] in AML, terrorism financing, tax evasion, sex trafficking”noted JPMorgan’s Jamie Dimon.
“Why do we allow these things to exist?”
Noticing that the conversation about cryptocurrency Dimon was not going well, one of the anchors changed the subject and led the conversation in a different direction. That is why the CEO gave his opinion on inflation and the global increase in interest rates by governments.
Blockchain and cryptocurrency-free smart contracts make sense?
As mentioned by Dimon, the technologies introduced by both Bitcoin and Ethereum are great. However, the billionaire refuses to accept the full package.
This brings us to the question above, how would a blockchain function without cryptocurrencies? There are some solutions, such as DLT (distributed ledger) that focus on this approach, but they are much more centralized than cryptocurrencies.
That is, taking cryptos out of this equation would result in other problems such as censorship and, of course, confiscation of funds and information, giving powers to third parties.
Therefore, it is difficult to imagine that cryptocurrencies will lose relevance. After all, while they can help criminals, ordinary citizens should not be punished for them and it is left to the legislature to look for other alternatives to fight crime.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
