Jamie Dimon, the Chairman and Chief Executive Officer of JPMorgan, a global investment bank, said in an interview published recently that bitcoin has no intrinsic value and that regulators are going to “regulate the hell out of it.”
His response was to address the question he was asked on whether bitcoin is “the fool’s gold of the future”
Jamie Dimon has continued to express his anti-crypto and bitcoin stance, saying he always believed it’ll be made illegal someplace like it was made illegal in China, therefore, he “thinks it’s a little bit of fool’s gold.”
However, he admitted that the cryptocurrency will be around long term.
He was further asked in the interview whether governments should regulate bitcoin, to which he exclaimed, “Yes,” further adding:
“They have to. You can’t regulate everything a bank does in terms of moving money and not regulate what you would call money.”
To elaborate his response, he said, “You can call it a security or an asset or something like that, but if people are using it for tax avoidance and sex trafficking and ransomware, it’s going to be regulated, whether you like it or not. So it’s not a moral statement. It’s a factual statement.”
Dimon however admitted that JPMorgan clients are interested in bitcoin even though he did not care about it. The bank had said in July that many of its clients wanted to invest in cryptocurrency as they saw it as an asset class. JPMorgan was offering six cryptocurrencies in investment funds to clients by August.
Dimon’s bitcoin and crypto skepticism did not just start today. In September 2017, he called BTC a fraud but later regretted making the statement. He also advised people to “stay away” from cryptocurrency in May.
Like Dimon, several regulators had similarly held the view that bitcoin has no intrinsic value, including President of the European Central Bank (ECB), Christine Lagarde; Governor of the Bank of England, Andrew Bailey; and Chairman of the US Federal Reserve, Jerome Powell.
In comparison to those views, many have pointed out that fiat currencies do not have intrinsic value as well. To further buttress this, a report published by the Federal Reserve Bank of St. Louis states, “State monopoly currencies, such as the U.S. dollar, the euro, and the Swiss franc, have no intrinsic value either.”
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