IMPORTANT POINTS:
- Jamie Dimon, CEO of JPMorgan Chase, suggests banning cryptocurrencies, citing their use in illegal activities.
- Despite Dimon’s opposition to cryptocurrencies, JPMorgan is involved in blockchain technology.
- There is a consensus among banking leaders and Senator Elizabeth Warren on the need to regulate cryptocurrencies for national security.
Jamie Dimon, CEO of JPMorgan Chase, launched a blunt criticism against Bitcoin and its ilk, suggesting in his remarks Wednesday on Capitol Hill that cryptocurrencies should be banned.
The head of the largest U.S. bank by assets commented under questioning from Sen. Elizabeth Warren, D-Mass., during a Senate Banking Committee hearing.
“I have always been deeply opposed to crypto, Bitcoin, etc. The only true use case for it is criminals, drug dealers… money laundering, tax evasion.
“If I were the government, I would close them.”
Impact on the financial industry
These statements are Dimon’s latest offensive against cryptocurrencies, although his bank is deeply involved in blockchain, the technology that enables the $1.6 trillion industry.
In previous statements, Dimon had called Bitcoin “an overblown fraud,” a comment he later retracted. He had also compared it to a “pet stone.”
Under further questioning from Warren, Dimon and several other big bank CEOs brought before the committee as part of a routine hearing on the industry, agreed that crypto companies should face the same anti-money laundering regulations as major financial institutions.
Consensus on regulations
The issue struck a rare note of unity between banking leaders and Warren, usually a harsh critic of the industry.
“When it comes to banking policy, I don’t tend to agree with billionaire bank CEOs, but this is a matter of national security. Terrorists, drug traffickers and rogue nations should be prohibited from using crypto for their dangerous activities. It’s time for Congress to act.” Warren.
