JPMorgan Chase CEO on Crypto: ‘Decentralized Ponzi Schemes’

The CEO of one of the largest banks in the world did not hold back on his opinion of cryptocurrency.

“They are decentralized Ponzi schemes,” Jamie Dimon, CEO of JPMorgan Chase & Co, said at a U.S. House Financial Services Committee hearing on Wednesday, according to Bloomberg.

Dimon has long been a cryptocurrency skeptic, as he noted in the hearing.

“I’m a major skeptic on crypto tokens, which you call currency, like Bitcoin,” he said.

But his comments come amid another crash for cryptocurrency this week, which has its own volatility and has been rocked by uncertainty in larger markets. The Federal Reserve yesterday boosted interest rates for the 5th time in 2022 amid continued inflation, which could lead to a higher unemployment rate and a recession, per the New York Times.

As Bloomberg reported, Dimon did say he thought stablecoins — which are pegged to some other financial instrument, like a currency, to try and limit its volatility — could be a positive thing if they were regulated.

Such regulation is in the works, Reuters reported.

The collapse of Celsius network, which filed for bankruptcy in July, put a spotlight on the troubles crypto investors can face when a shiny startup goes belly up.

Related: ‘Next Level Insulting’: The Wife of Celsius Network’s CEO Is Selling T-Shirts That Say ‘Unbankrupt Yourself’ in Reference the Now-Bankrupt Crypto Company’s Slogan.

Retail investors in these situations are typically not prioritized. However, Celsius was called an actual “Ponzi scheme” in one lawsuit.

Celsius promised users very high rates of return for leaving their cryptocurrency on its platform. It paused all withdrawals in June.

Dimon testified alongside other major banking CEOs at the hearing Wednesday and returned to the Hill Thursday to testify in front of the Senate.