Wed, 01 Dec 2021

Bitcoin will soon be regulated, warns JPMorgan chief Dimon

Robert Besser
15 Oct 2021, 20:34 GMT+10

WASHINGTON D.C.: Jamie Dimon, chief executive of JPMorgan, described bitcoin as "worthless" and said governments will soon regulate digital currency, while speaking before the Institute of International Finance on Monday.

Despite the comments by Dimon, who previously called the new technology a "fraud" and "fool's gold," JPMorgan has begun offering six cryptocurrency products to clients.

Other investment houses have also sold cryptocurrency products to their clients, including Goldman Sachs and Citigroup, while Morgan Stanley was the first bank to allow clients to trade crypto and is now investing its own money in digital currencies.

However, Dimon is just one of many business and political leaders critical of cryptocurrencies, who include former U.S. president Donald Trump and hedge fund manager John Paulson.

In spite of their negative views, the price of bitcoin rose in recent weeks, steadily climbing to $57,000 despite dropping to $40,000 last month. Last year, the notoriously volatile currency surged from around $10,000 in October to more than $60,000 in April.

Other cryptocurrencies have seen even more dramatic rises, such as Dogecoin, which trades at around 3 cents and surged as much as 400 percent in a single week.

The prices of cryptocurrencies are also easily affected by comments and tweets by influential figures, such as Tesla CEO Elon Musk and billionaire investor Mark Cuban.

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