JP Morgan CEO Jamie Dimon set the cryptocurrency community abuzz this month, by stating that bitcoin was a “fraud”, and adding that he would fire any employee trading in the world’s number one cryptocurrency as, according to him, it was both “stupid” and against the bank’s rules.
The banker even compared bitcoin to the 17th-century tulip bubble, and his words were so harsh that the cryptocurrency’s price fell by about 24% after they were spoken. After the fall, JP Morgan bought about €3 million worth of Bitcoin ETNs, reportedly on behalf of its clients. The move, as reported by Core Media, saw a Swedish bitcoin market-maker – Blockswater – file a market abuse report against the banker for “spreading false and misleading information” about bitcoin.
Recently, once again, Jamie Dimon decided to share his opinion on bitcoin and other cryptocurrencies, while speaking to CNBC-TV18 in New Delhi, India. Notably, the CEO stated:
“Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down.”
Dimon added that he believes governments will eventually crack down on cryptocurrencies and start controlling them by criminalizing their use, forcing them to be used only on black markets.
“Creating money out of thin air”
Jamie Dimon also criticized bitcoin and other cryptocurrencies for not being fiat currencies backed by a central bank. He stated:
“With central banks, (the money) says legal tender: you have to take this as payment. It’s very cheap to do, it’s very easy to move back and forth. JPMorgan moves $6 trillion around the world every day very efficiently, very quietly, very effectively and very cost efficient”
JP Morgan’s chief executive, seemingly oblivious to bitcoin’s true value, stated that “creating money out of thin air” without it being backed by a government makes it very different from money created with government backing.
Notably, when asked about his comments on bitcoin in an interview with the Economic Times, Dimon stated that he wasn’t against digital currencies, but that governments like to have a central bank controlling their currency, so they can know who has it, where it is going, and where it is going.
To him, as bitcoin grows, so does the likelihood of governments attempting to shut them down. The banker used China’s recent crackdown as an example, again seemingly oblivious to how China’s communist regime works, and its bans on other extremely valuable things, including Google, Facebook, siblings, and complicated company names.