Dimon Strikes Again – Claims Governments Will Close Bitcoin Down

Blockchain, Investing, News, Regulation | September 22, 2017 By:

JPMorgan Chase Chief Executive Jamie Dimon is at it again on cryptocurrency. This time, he’s warning that governments will attempt to shut them down if they grow too big.

“Right now these crypto things are kind of a novelty,” Dimon said in an interview with an Indian television station in New Delhi. .”People think they’re kind of neat. But the bigger they get, the more governments are going to close them down.”

Dimon’s latest remarks follow his proclamations last week that bitcoin is “a fraud,” part of a diatribe at a financial conference. The reaction from investors to those comments – coupled with China’s actions against cryptocurrency exchanges – caused a market plunge of 20 percent. It has since recovered most of the losses.

Ironically, Dimon’s JP Morgan Chase is looking into developing its own electronic currency, filing a patent for it with the US Patent Office.

In India, Dimon was concerned that cryptocurrencies are everywhere. “It’s creating something out of nothing that, to me, is worth nothing,” he said. “It will end badly.” He claimed that government crackdowns will include arrests of those who traffic in bitcoin, driving the currency into the black market.

“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,” he said. “Creating money out of thin air without government backing is very different from money with government backing.”

Dimon indicated he had no issue with blockchain technology, the underpinnings of bitcoin. “Blockchain is a technology that can be used for multiple things, including cryptocurrency. It could be used for digital dollars, and there are digital dollars already; a lot of the dollars held in our bank are digital,” he said.