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JPMorgan boss Jamie Dimon personally advises people to ‘stay away’ from cryptocurrency

By on May 30, 2021 0

JPMorgan Chase CEO Jamie Dimon has provided personal advice to investors regarding investing in cryptocurrencies, such as bitcoin. He said his personal advice to people was to “stay away” from cryptocurrencies. However, his bank, JPMorgan, will not stay on the sidelines as clients want exposure to this asset class.

Jamie Dimon’s personal advice to investors on Bitcoin, other cryptocurrencies

Jamie Dimon, CEO of JPMorgan Chase, the largest bank in the United States, testified before the House of Financial Services Committee on Thursday about the cryptocurrency. While admitting that JPMorgan clients are interested in investing in bitcoin, Dimon said:

My personal advice to people is to stay away. That’s not to say customers don’t want it. It comes down to how you should run a business. I don’t smoke marijuana, but if you make it national law, I won’t stop our people from banking it.

“We are debating the need to make it available somehow, in a secure manner, so that people can buy it and sell it” and put it on their financial statements and balance sheets, the CEO continued. by JPMorgan. “But my personal point of view, it’s nothing like fiat money. It has nothing to do with gold. Buyer, beware.

Dimon clarified that his statements only apply to cryptocurrencies, not blockchains or stablecoins, which are “backed by assets,” he said.

The boss of JPMorgan further emphasized that his personal opinions do not influence the financial services JPMorgan Chase offers to its clients. “Many of our customers ask: can we help them buy or sell cryptocurrency? Dimon said at JPMorgan Chase’s annual shareholders meeting last week. “And we are investing in this as we speak.”

The JPMorgan executive further said during his testimony to Congress on Thursday:

I don’t tell people how to spend their money, regardless of how I might personally feel about something.

Reiterating his view expressed in April that cryptocurrencies are emerging issues that must be addressed quickly, Dimon said in his testimony to Congress that the crypto asset class could benefit from more regulation.

“I think in the long run, regulators that are one day behind and one dollar short should pay much more attention in the future, such as order flow payment, high frequency trading, crypto -currency and put in place a legal regulatory framework. he, ”he said.

Dimon has long been a bitcoin skeptic. He called the cryptocurrency a fraud in September 2017. Now JPMorgan is slowly entering the crypto space. In March, the bank launched a crypto investment product that tracks shares of public companies with exposure to bitcoin. The bank would also work to provide customers with access to bitcoin investments.

JPMorgan recently highlighted three reasons to invest in bitcoin after its analysts predicted the cryptocurrency’s price could reach $ 146,000 as its competition with gold intensifies. The company then lowered its estimate of the bitcoin price to $ 130,000, but said customers can put 1% of their wallets in. BTC. Last week, JPMorgan launched the Coinbase stock hedge with an overweight rating and a 60% rise from the current price.

What do you think of Jamie Dimon’s personal advice to investors on bitcoin and cryptocurrencies? Let us know in the comments section below.

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