JPMorgan CEO Slams Crypto Anew, Praises Blockchain Technology

JPMorgan CEO Jamie Dimon has once again slammed cryptocurrencies, calling them "decentralized Ponzis" and pointing out that there are a large number of illicit activities being implemented using crypto assets.

In a speech at an Institute for International Finance (IIF) event, Dimon said that he doesn't see a future for these blockchain-based assets, CoinDesk reported Thursday.

The CEO of one of the biggest banks in the world further said that blockchain, on the other hand, has certain "real" aspects, referring to Onyx, JPMorgan's wholesale payments transactions platform.

However, this is not the first time Dimon has called cryptocurrencies Ponzis. He had previously called Bitcoin, the world's biggest cryptocurrency, "a fraud," but immediately said that he regretted doing so.

"I'm a major skeptic on crypto tokens, which you call currency, like bitcoin. They are decentralized Ponzi schemes," Dimon said in an appearance at a congressional testimony in September, as per Bloomberg.

JPMorgan does provide several crypto-related services to its clients. The company has launched a blockchain network, Liink, that allows institutions to exchange payment-related information and a token, JPM Coin, that enables clients to transfer their dollar deposits.

"Going forward we see upside for bitcoin and crypto markets more generally," JPMorgan strategists said earlier this year.

Dimon's comparing of crypto to illicit activities comes at a time when he and his firm are being threatened with litigation by the Department of Justice in an unspecified number of criminal probes. JPMorgan has offered a $3 billion payment to settle these probes while the regulatory authority has asked for compensation worth over $11 billion, $7 billion in penalties, and $4 billion in consumer relief.

If the deal passes through, it would likely be the largest single-bank payout in the history of financial regulation.