Jamie Dimon, CEO of global investment bank JP Morgan, says bitcoin has no intrinsic value and “regulators are going to get out of it.” He emphasized, “If people are using it for tax evasion, sex trafficking and ransomware, it will be regulated, whether you like it or not.”
JPMorgan Head of Bitcoin and Crypto Regulation
JPMorgan Chase Chairman and CEO Jamie Dimon continued his anti-Bitcoin and anti-crypto stance in an interview with Axios on HBO, published Monday.
Dimon was asked if bitcoin is the “foolish gold of the future?” The CEO of JPMorgan replied:
It has no intrinsic value, and regulators will stage hell out of it.
While acknowledging that cryptocurrency will be in the long run, Dimon said, “I’ve always thought it was going to be illegal somewhere, like China made it illegal, so I think it’s just fool’s gold.”
Several regulators have similarly said that bitcoin has no intrinsic value, including European Central Bank (ECB) President Christine Lagarde, Federal Reserve Chairman Jerome Powell, and Bank of England Governor Andrew Bailey. In comparison, many have also pointed out that fiat currencies also have no intrinsic value. “Currency monopolized by the state, such as the US dollar, the euro and the Swiss franc, has no intrinsic value either,” says a report published by the Federal Reserve Bank of St. Louis.
Dimon was also asked if governments should regulate bitcoin. “Yes,” he shouted, adding, “they must. You cannot regulate everything the bank does in terms of moving money and not regulate what you might call money.” The JPMorgan executive explained:
You can call it security or an asset or something, but if people are using it for tax evasion, sex trafficking and ransomware, it will be regulated, whether you like it or not. So it is not an ethical statement. It is a realistic statement.
Dimon has always been skeptical of bitcoin and cryptocurrency. He called BTC a scam back in September 2017 but later regretted the release of the statement. In May, he advised people to “stay away” from cryptocurrency.
While he has stated that he himself is not interested in bitcoin, Dimon admitted that JPMorgan clients are interested. In July, the bank said that many of its clients view cryptocurrency as an asset class and want to invest in it. By August, JPMorgan was offering six cryptocurrency mutual funds to clients.
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