Crypto-agnostic Jamie Dimon reiterates his cynicism towards the emerging investment class and warns investors to “stay away from it”. However, the head of JP Morgan has no qualms about selling it to customers.
In a love-hate relationship with cryptocurrency, Dimon raises the alarm again with cryptocurrency. Given his willingness to offer it to customers, it is clear that he believes that crypto is not going away.
Crypto Buyer Beware
The head of JP Morgan has blown up Bitcoin in the recent past, calling cryptocurrency a scam and worse than tulip bulbs. He even went so far as to say that he would fire anyone who deals with it. His justification? Because it’s stupid and it’s against our rules.
That was four years ago. Now JP Morgan employees are openly active in the crypto room. For example, a report by JP Morgan analysts earlier this year predicted a price of $ 146,000 for Bitcoin.
More recently, the U.S. investment bank also announced plans to offer an actively managed Bitcoin fund to wealthy clients.
The move reflects the approach taken by many of the top US banks that have also presented plans to enter cryptocurrency markets. Including Morgan Stanley and Goldman Sachs.
Industry analysts point out that JP Morgan has made the greatest strides in cryptocurrency of any US bank.
“JPMorgan has made some of its biggest strides, adding Coinbase Inc. and Gemini Trust Co. bitcoin exchanges as banking customers last year.”
Although the head of JP Morgan is no longer open to crypto, he still has reservations. In a Congressional report to the US House of Representatives Financial Services Committee, Dimon advised people to stay away from it.
Despite his doubts, Dimon acknowledged that his personal opinions on the matter did not affect the services JP Morgan provides to its clients. Given the high level of customer demand, he said it was not his job to tell people how to spend their money.
“It goes back to how you have to run a business. I don’t smoke marijuana, but if you make it nationally legal, I won’t stop our people from banking it. “
Dimon wants a crackdown
During the Investment Company Institute (ICI) annual meeting earlier this week, Dimon urged regulators to put more control over the crypto industry. On top of that, the authorities continue to struggle when it comes to governing the space.
“When it comes to crypto, there should be a legal, regulatory, tax and related framework (AML). It’s now worth $ 2 trillion. When are they going to say, “Oh my god, this deserves our attention.”
He urges regulators to act now, before it gets too big and, he believes, past the point where crypto criminals are ruining all of our lives.
Even so, it is clear that Dimon knows that crypto is not going away. Why not join in if you can’t beat her?