JPMorgan CEO Calls Bitcoin a 'Fraud' and 'Ponzi Scheme,' Admits Value of Blockchain

JPMorgan Chase CEO Jamie Dimon maintains his negative stance on Bitcoin, calling it a fraud and dismissing its viability as a currency. Despite recognizing the potential of blockchain applications, Dimon emphasizes that Bitcoin lacks legitimacy and operates as a Ponzi scheme. While opposing investments in Bitcoin, he acknowledges the interest in cryptocurrencies among some JPMorgan clients and supports their right to invest.

JPMorgan CEO Jamie Dimon Declares Bitcoin a 'Fraud' and 'Ponzi Scheme'

In a scathing attack, JPMorgan Chase CEO Jamie Dimon has once again denounced Bitcoin, labeling the cryptocurrency a "fraud" and a "Ponzi scheme" with no future as a currency.

Dimon's unwavering skepticism was evident during a recent interview with Bloomberg. "Cryptocurrencies like Bitcoin, I have always said they are a fraud," he asserted.

Dismissing any hope for Bitcoin or cryptocurrencies in general, Dimon maintained, "If they think they are a currency, there is no hope. It's a Ponzi scheme."

However, Dimon acknowledged the potential value of some applications of blockchain technology and cryptocurrencies, particularly in the realm of smart contracts. He admitted that "the blockchain works" when it serves specific purposes, such as managing smart contracts.

Despite Dimon's vehement criticism, JPMorgan is an authorized participant for the spot Bitcoin exchange-traded fund (ETF) by Blackrock. Emphasizing his personal stance, Dimon stated that while he does not advocate for investing in Bitcoin, he respects the freedom of others to do so.

Dimon's long-standing animosity towards cryptocurrencies has been unwavering. He has repeatedly denounced Bitcoin, claiming it is not only a fraud but also frequently used for nefarious activities such as sex trafficking, tax evasion, money laundering, and terrorism financing.

In a Senate hearing, Dimon boldly declared that if he were the government, he would "shut down cryptocurrencies."

Despite his skepticism, Dimon has acknowledged that some JPMorgan clients are interested in cryptocurrencies and has maintained their right to invest.

Swiss Referendum Aims to Include Bitcoin in National Reserves

Meanwhile, in a bold move, a group of Swiss Bitcoin supporters led by Yves Bennaïm have initiated a referendum to amend the Swiss Constitution. The proposal seeks to include Bitcoin alongside gold in the currency reserves of the Swiss National Bank (SNB).

The initiative aims to modify a clause that currently mandates the SNB to hold a portion of its reserves in gold, by adding "and Bitcoin." While seemingly subtle, this change could have significant implications for Swiss tax management.

Yves Bennaïm, member of the board of the Bitcoin Association Switzerland, views the proposal as a strategic measure to safeguard Swiss sovereignty and neutrality amidst global economic uncertainty.

Luzius Meisser, president of the wealth management division of Bitcoin Suisse, endorses the initiative. He emphasizes the superior resilience of Bitcoin compared to investments in euros and dollars, which are vulnerable to inflation.

Furthermore, Professor Gunther Schnabl from the University of Leipzig asserts that Bitcoin could act as a risk diversification tool for the SNB.

However, concerns have been raised regarding the volatility of Bitcoin and regulatory uncertainties surrounding it, factors that may clash with the conservative approach typically adopted by national central banks.