JPMorgan Chase CEO Jamie Dimon has been a harsh critic of cryptocurrencies over the past few years, as seen in the videos below.
Jamie Dimon – 2015 Forbes
Jamie Dimon – 2018 CNBC
In all fairness, he has never been opposed to the technology behind cryptocurrencies, he simply – and rightfully – believes independent cryptocurrencies will be the target of regulators at the national and international level. He has always drawn a clear line of distinction between the potential benefits of blockchain technology and a distributed ledger as opposed to the inevitable demise of cryptocurrencies distributed by anyone outside the approved global fiat money system.
The excerpts below from Mr. Dimon are taken directly from the videos above.
I could care less what Bitcoin trades for, how it trades, why it trades, who trades it; if you’re stupid enough to buy it, you’ll pay the price for it one day. … The world’s economy is so big, we move – JP alone, these companies – $6 Trillion [per day], and Bitcoin in total – all these currencies are $50 Billion, maybe a billion dollar trades a day? … Governments are going to crush it one day. (2018 Forbes – emphasis mine)
There will be no real non-controlled currency in the world. There’s no government that’s going to put up with it for long. … There will be no currency that gets around government controls. … The technology will be used. It may even be used to transport currency, but it will be U.S. dollars. (2015 Forbes)
Here the old adage, “good for me but not for thee” fits perfectly, because the promise of a cryptocurrency issued in U.S. dollars is now a reality. JPMorgan Chase just announced the release of their own commercial-use cryptocurrency, the JPM Coin. Again, this announcement is not out of character with his previous positions regarding cryptocurrencies. He and the rest of the global elite banking system will make sure the fiat system remains, even if it means destroying the wealth of millions of people across the globe as they continue to delegitimize an investment class outside their control.
That is precisely what Mr. Dimon ultimately admits (again) in the video below, as he tries to divert our attention away from the naked reality of the fiat system. First, he mentions the risk of terrorism and eventually criminal activity. Then, he turns to the threat of little old ladies losing their money because the U.S. government allowed the speculative investment to exist. Finally, he gets to the heart of the matter, control.
The global elite’s position regarding cryptocurrencies is grossly hypocritical.
One of the critiques of cryptocurrencies is that it’s only backed by speculation. Well, that argument can’t be used too often, because fiat currency works on the same principle…only worse. Fiat currency is backed by debt (bonds and notes), and that debt can only be sold to people who believe the debt has value (i.e. will be repaid). To make matters worse, there is no way to ever fully repay the debt with fiat currency, because the cost of producing the currency is built into the debt. As such, there will always be more debt than there is money.
Another critique, as mentioned above, is that it will be used for criminal purposes. That is a smoke screen. There is always a digital footprint that can be traced. Cash is far better for illicit purposes because it can be used without a trace. That’s why it’s used to traffic drugs.
What’s even more hypocritical about the claim of potential criminal use, especially for Mr. Dimon, is that JPMorgan Chase has been named in numerous cases of fraud and abuse directly tied to our existing monetary system (i.e. LIBOR scandal, currency exchange rate scandal).
The government has even offered them legal exemptions for their misdeeds, as in the case of the Employee Benefit Security Administration debacle. As part of the Department of Labor’s reasoning for the exemption, they recognized “the size of relevant fines imposed by various regulators: The Department of Justice imposed a $550 million fine; The Board of Governors of the Federal Reserve Board imposed a $342 million fine; and the OCC, the Commodity Futures Trading Commission, and the FCA imposed fines of $350 million, $310 million, and £222,166,000, respectively.”
It’s not about speculation and it’s not about potential criminal uses. The real opposition to cryptocurrency has been and will always be about control. Below, is yet another example of the global elite’s fear of competition taken directly from an IMF staff paper (also in its entirety further below).
IMF Staff Discussion Note - Fintech and Financial Services
Regulators may need to complement their focus on entities with increasing attention to activities, as financial services are increasingly provided by a diverse group of firms and market platforms.
Governance needs to be strengthened. Rules and standards will need to be developed to ensure the integrity of data, algorithms, and platforms.
Policy options to support open networks could be considered. In doing so, central banks may need to assess costs and benefits of increasing access to their settlement systems or offering digital national currencies.
Legal principles need to be modernized. Maintaining trust in financial services may also require the development of new legal rules to clarify rights and obligations within the new global financial landscape. (pp. 5-6)
Digital currency is coming and cash will disappear. It’s just a matter of time. Are you ready?