The CEO of JP Morgan, yet one of the most invested banks in the world in cryptos, considers them a vast fraud.
While JP Morgan, the bank he heads, is one of those that has invested the most in cryptocurrencies in the world, Jamie Dimon has been critical to say the least, refusing to even call them “currencies”. Stablecoins, however, are finding favor in his eyes for now, although the recent crash that has affected them just as much could force him to review his copy.
Can we qualify cryptocurrencies as a Ponzi scheme?
A Ponzi scheme is a fraud scheme that involves paying early investors with new entrants’ money, rather than actually investing it. If no investigation uncovers the deception, it inevitably ends up collapsing the day when too many investors try to withdraw their stake. And for Jamie Dimon, most decentralized currencies fit this definition perfectly.
To his credit, the CEO of the American bank JP Morgan is not the only one to present such a vision of cryptocurrencies. The lawsuit against Elon Musk for his promotion of DodgeCoin before it collapsed uses exactly these terms. Elsewhere, in South Korea, the arrest warrant issued against Do Kwon, the creator of Luna and Terra, shows that this issue is international, and that justice and financial institutions are still groping when it comes to qualifying and to understand cryptos.
Jamie Dimon does not put all corners in the same bag
In his interview with the American site Bloomberg, however, it appears that Stablecoins are finding favor in Dimon’s eyes. The latter, in fact, theoretically offer a better guarantee of stability for a good reason: their course is backed by that of a traditional currency. If these are sometimes subject to speculation or inflation, they are disproportionate to cryptos, because their value is not only based on the confidence of their users, but also on bank guarantees and gold reserves. central banks that issue them.
Despite this, the recent crypto crash has demonstrated that affixing “ steady » in front of a currency was not enough for it to become one. The Terra, whose course was theoretically linked to that of the dollar, collapsed, triggering the run of its creator. For its part, the dollar is however today at a historically high level.
Source : Bloomberg, investing
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