JP Morgan CEO Jamie Dimon Remarks Bitcoin as Fraud of the Century

Jamie DimonJamie Dimon who is the CEO of banking major JP Morgan has expressed his doubts related to the viability of bitcoin – cryptocurrency.

Dimon calls the cryptocurrency as fraud and says it would blow up in due course of time.

He further said that it was only suitable for people who are not working within the formal banking structure.

Dimon made the following statement:

The currency isn’t going to work. You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart. If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollar.

The CEO of JP Morgan while attending a conference in New York said that he would fire any employee in the investment if they are found indulging in bitcoin trade as it is against the rules and a stupid decision altogether. He has compared the bitcoin popularity to the famous tulip bulb craze of the 17th century.

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He has made these remarks against the backdrop of rising acceptance and overall popularity of bitcoin as the currency and its increasing value. In this year, bitcoin has grown four times from $1,000 in January to the recent $4000. The CEO says the current growth to be ephemeral and not real that will collapse eventually even though bitcoin hits $20,000 mark.

Bitcoin is a virtual currency like Ethereum that bypasses all kinds of the artistic payment process. It works on blockchain technology that features decentralised ledger system. The bitcoin over the years has become mainstream with several organisations and merchants accepting this form of payment.

Several banking institutions and central banks of many nations have initiated projects seeking leverage bank chain technology for processes like settlement and technology. The technology comes with several benefits like better transparency, faster processing, lower costs and increased security. It is interesting to note that JP Morgan is working on a trail project for trade based on blockchain technology.

The vocal criticism of Jamie Dimon follows a warning from the Financial Regulator of the UK economy on ICOs (Initial Coin Offerings) that enables investors using cryptocurrencies for fund startups.

Yann Quelenn who is an analyst at online bank Swissquote said that bitcoin has every potential to become a currency and might even become a safe-haven. He further commented that cryptocurrencies like bitcoin are considered a new asset class that challenges traditional flat money causing central banks to battle for their monopoly.

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JP Morgan CEO Jamie Dimon Remarks Bitcoin as Fraud of the Century
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JP Morgan CEO Jamie Dimon Remarks Bitcoin as Fraud of the Century
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Jamie Dimon who is the CEO of banking major JP Morgan has expressed his strong doubts related to the viability of "Bitcoin" cryptocurrency.
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