JPMorgan’s CEO Jamie Dimon has attacked Bitcoin and the broader cryptocurrency market over the past few years.
Shark Tank host Kevin O’Leary believes that JPMorgan’s CEO feels threatened by disruption in payment systems. He mentioned this while speaking at this year’s Converge22. Kevin O’Leary stated that cryptocurrencies have changed how payment systems work globally, and Jamie Dimon isn’t happy with the situation.
Kevin O’Leary made this statement after Dimon called himself a major sceptic on crypto tokens, which you call currency, like Bitcoin. The JPMorgan boss called cryptocurrencies decentralised Ponzi schemes. Kevin O’Leary said;
“This isn’t about speculation on asset price. This is about reducing the fees of how the world’s economies work. More transparent, more productive, completely auditable, regulated, but less expensive. So, does Jamie Dimon feel threatened? You are damn right he does. That is a big part of how he makes money.”
The Shark Tank host explained that friction is one of the major problems in the traditional financial system and banks and other financial institutions make a profit on transaction fees.
Kevin O’Leary added that the introduction of stablecoins into the financial ecosystem could lead to a reduction in fees throughout the world.
The crypto market remains largely unregulated in various parts of the world. The venture capitalist said sovereign wealth and pension funds are waiting for regulation before including cryptocurrencies in their portfolio. He said;
“If you are a sovereign wealth fund or a country that is oil-rich, perhaps you are generating a quarter of $1,000,000 in the 12 hours. The only place on earth you can plot that is in the S&P. The only way you can do that is to be compliant with the SEC rules. They are never going to make a move against the SEC in any way until these rules are determined.”
He believes that a regulatory shift in the United States’ approach to cryptocurrencies could see cryptos surge by more than 10% overnight.
Lawmakers in the United States are currently working on a bill to regulate stablecoins, and it is expected to be approved before the end of the year.