JPMorgan Chase CEO Says Bitcoin Is 'Used Heavily By Sex Traffickers, Money Launderers, And Ransomware'

Jamie Dimon, CEO of JPMorgan Chase, recently reaffirmed his strong criticism of Bitcoin, calling it a "decentralized Ponzi scheme" and a "fraud."

In an interview with CBS News' Lesley Stahl, Dimon maintained his skeptical stance, questioning Bitcoin's value. "We are going to have some kind of digital currency at some point," he remarked, hinting at a broader shift in the financial landscape.

Dimon Says Bitcoin Is A Criminal's Currency

'I'm not against crypto. You know, bitcoin itself has no intrinsic value. It's used heavily by sex traffickers, money launderers, ransomware.' Dimon has previously dismissed cryptocurrencies as having the utility of 'pet rocks' and has called Bitcoin a fraudulent Ponzi scheme.

In an interview posted Sunday, Dimon expressed his reservations about Bitcoin, stating, 'I just don't feel great about Bitcoin.' He compared investing in Bitcoin to smoking, acknowledging personal freedom but emphasising its potential harm.

Crypto Gets Green Light From Trump Administration

The incoming Trump administration's supportive signals towards the crypto industry have boosted investor confidence. Bitcoin experienced a remarkable surge in 2024, with its price skyrocketing by a staggering 121%.

This dramatic increase propelled Bitcoin's value to unprecedented heights, culminating in a historic milestone in December when it breached the £82188.50 ($100,000) barrier for the first time. While critical of Bitcoin, Dimon acknowledged the legitimacy of blockchain technology.

A blockchain is a secure and transparent digital ledger that stores data chronologically, with each entry linked to the previous one. 'The use of blockchains for money, moving money, moving data, we already use it,' he said.

'Stablecoins are real. How they're used and how they're protected by regulators is an issue they have to deal with,' he added. Stablecoins are a type of cryptocurrency pegged to a stable asset and are designed to maintain a relatively stable price by being pegged to a stable asset, such as the US dollar or gold.

'JPMorgan is already using blockchain,' he said. 'Blockchain itself will work and that is kind of crypto.'

Dimon: A Long-Standing Bitcoin Skeptic

Dimon's animosity towards Bitcoin is well-documented. In 2017, during an investor conference in New York, the CEO of the United States' largest bank declared he would swiftly dismiss any investment banker trading in Bitcoin. His rationale? 'For two reasons: it's against our rules, and they're stupid. And both are dangerous.'

'The currency isn't going to work. You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart,' he added. 'If you were in Venezuela or Ecuador or North Korea or a bunch of parts like that, or if you were a drug dealer, a murderer, stuff like that, you are better off doing it in bitcoin than US dollars.'

'So there may be a market for that, but it would be a limited market,' Dimon explained. It has more than quadrupled in value since December, hitting about $4,700 last month before falling back. It fell by about 5% after Dimon's comments on Wednesday to below $4,000.

However, the digital currency experienced a setback following Dimon's critical remarks on Wednesday. It witnessed a 5% decline, pushing its value below the £3287.54 ($4,000) mark.

The Role Of Cryptocurrency In Criminal Activity

So, what proportion of cryptocurrency transactions are actually used for illicit activities? According to Chainalysis' 2021 report, criminal activity accounted for a relatively small portion of cryptocurrency transactions in 2019, representing only 2.1% of the total volume, which amounted to approximately £17.59 billion ($21.4 billion).

While cryptocurrencies can be exploited for illicit activities, such as money laundering and financing terrorism, they are not inherently evil. Acknowledging that traditional currencies are also widely used for criminal purposes is crucial.

As Crypto Altruism emphasises, the focus should be on understanding and mitigating the risks associated with cryptocurrency rather than demonising the technology itself. Crypto Altruism argues that criminal activity will persist regardless of the financial tools available. The core issue lies with the criminal intent, not the specific currency used.