JPMorgan Chief Executive Says Governments Could Shut Down Bitcoin, CryptocurrenciesSeptember 22, 2017 9:04 pm
Chief Executive Jamie Dimon from JP Morgan Chase criticized bitcoin and other digital currencies again on Friday for the second time in a week, warning that governments could shut them down suddenly if they expand too quickly, according to CNBC.
“Right now these crypto things are kind of a novelty. People think they’re kind of neat. But the bigger they get, the more governments are going to close them down,” Dimon said during an interview with CNBC-TV18 in New Delhi on Friday.
Dimon said that he was concerned that with the growing popularity of bitcoin, ethereum, and other various initial coin offerings (ICOs), cryptocurrencies seemed to be popping up everywhere.
“It’s creating something out of nothing that to me is worth nothing,” he said. “It will end badly.”
Dimon warned that eventually governments will need to crack down on the industry and could try to control it by threatening anyone who buys or sells bitcoin with imprisonment, essentially forcing digital currencies into a black market option.
Earlier this month Dimon called bitcoin a “fraud,” which along with other high-profile criticisms from hedge fund investors about cryptocurrencies, came just before a sharp sell-off in bitcoin.
The price of one bitcoin fell from around $4,340 to as low as $2,981.05 in the days after his comments.
Bitcoin has recovered back to around $3,640.68, according to data from CoinDesk.
Even with the ongoing volatility of the cryptocurrency, bitcoin’s value has risen 264 percent this year.
Some were also critical of Dimon taking aim at bitcoin.
“Comments like Jamie’s show a failure to grasp the significance of the blockchain and the power of brand in a fundamental sea of change,” said Scott Nelson, chairman and CEO of blockchain firm Sweetbridge, in an email to CNBC last week.
Blockswater also filed a market abuse complaint in Sweden against Dimon and JPMorgan over the statements and claimed that Dimon was deliberately spreading false and misleading information, according to a report by City A.M.
JPMorgan Chase declined to comment, the report said.
– Maureen Foody