JPMorgan Chase CEO Jamie Dimon has once again expressed his skepticism about Bitcoin. In an interview with CBS News, Dimon stated that the cryptocurrency has “no intrinsic value” and is heavily used by criminals for illegal activities such as sex trafficking, money laundering, and ransomware. Despite Bitcoin’s price more than doubling in the past year, reaching nearly $100,000 in December, Dimon remains unconvinced of its value.
He likened investing in Bitcoin to smoking, saying, “I applaud your ability to want to buy or sell it, just like I think you have the right to smoke. But I don’t think you should smoke.”
Dimon’s criticism of Bitcoin is not new, as he has previously labeled it a “fraud” and a “Ponzi scheme.” However, his company, JPMorgan Chase, has made notable investments in the cryptocurrency space, including holding shares in the Grayscale Bitcoin Trust and launching its own digital currency called JPM Coin. The use of cryptocurrencies for illegal activities has been a growing concern as digital assets gain popularity.
A report by ChainAnalysis highlighted that bad actors are leveraging cryptocurrencies for crimes because they are “cross-border, virtually instant, and generally inexpensive to transact.”
Dimon’s comments come at a time when President-elect Donald Trump’s administration is expected to take steps to further legitimize digital assets.
Dimon remains skeptical of Bitcoin
Trump positioned himself as the “crypto candidate” during his campaign, accepting donations in various cryptocurrencies and advocating for the U.S. to become a leading global crypto capital.
Regarding the incoming administration’s plans to reduce government spending, an initiative led by Elon Musk, Dimon expressed both support and caution. He acknowledged Musk’s extraordinary talent but questioned whether this approach is the best way to make the government more efficient. Musk has set ambitious targets for reducing government expenditure through the newly established Department of Government Efficiency (DOGE).
While he initially claimed he could slash “at least $2 trillion” in spending, he later acknowledged that this might be a best-case scenario and estimated the actual cuts could be about half that figure. Despite Dimon’s continued negative outlook on Bitcoin, JPMorgan has been engaging in the growing cryptocurrency market. The bank has profited from Bitcoin’s increasing use as a financial product and serves as an authorized participant for BlackRock’s spot Bitcoin ETF.
Additionally, JPMorgan has announced plans to introduce tokenization technology and on-chain foreign exchange capabilities on its platform.
