JP Morgan CEO calls Bitcoin ‘Ponzi Scheme’ despite serving as Authorized Participant for BlackRock ETF JP Morgan CEO calls Bitcoin ‘Ponzi Scheme’ despite serving as Authorized Participant for BlackRock ETF
Jamie Dimon once again expressed doubts about Bitcoin's utility and legitimacy as a form of money during an interview.
2 min read
Updated: Apr. 18, 2024 at 7:10 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
JPMorgan Chase CEO Jamie Dimon reiterated his strong skepticism toward Bitcoin on April 18, calling it a “fraud” and a “Ponzi scheme” despite the lender’s involvement in BlackRock’s spot BTC exchange-traded fund (ETF).
Dimon, who has a history of critiquing the digital currency, made the latest comments during an interview on Bloomberg TV, where he expressed doubts about Bitcoin’s utility and legitimacy as a form of money.
He said:
“Bitcoin and similar cryptocurrencies are simply not functional as currencies. If they think they’re a currency, there’s no hope for it. It’s essentially a Ponzi scheme dressed up as tech innovation.”
Despite the JP Morgan CEO’s long-standing criticism of Bitcoin, the lender has been serving as an Authorized Participant for BTC ETFs since their launch and has been involved in several blockchain-based projects for numerous years.
Dimon acknowledged the potential of certain aspects of blockchain technology during the interview, particularly those that enable smart contracts. He said:
“There are elements within the broader crypto sector, such as those facilitating smart contracts and blockchain applications, that do present real value.”
The veteran banker’s comments come amid a backdrop of fluctuating crypto values, with Bitcoin having recently rebounded to trade around the $63,000 mark, significantly up from its lows but well below its all-time high.
Growth despite criticism
Dimon has been vocal about his concerns with cryptocurrencies in the past, citing their potential to enable illegal activities such as money laundering, fraud, and tax evasion due to their anonymity and lack of regulation.
He has previously called for more stringent oversight to prevent the financial crimes associated with cryptocurrencies.
Despite Dimon’s critical stance over the years, the crypto market has continued to grow, with Bitcoin’s market capitalization recently surpassing $1.2 trillion. His comments reflect ongoing debates within the financial community about the viability and safety of investments in cryptocurrencies.
Industry analysts suggest that while skepticism like Dimon’s is not uncommon among traditional financial leaders, the innovation and adoption of blockchain technology show no signs of slowing down. As discussions about the regulatory framework continue, the future of cryptocurrencies remains a hotly contested topic across global financial markets.
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Author 
Assad Jafri
AJ, a passionate journalist since Yemen's 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
JPMorgan
JPMorgan Chase & Co is a global leader in financial services, offering solutions to the world’s most important corporations, governments, and institutions in more than 100 countries.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
Jamie Dimon, an American billionaire, business executive and banker, has held the dual roles of chairman and CEO of JPMorgan Chase since 2005.