[Asia Economy Reporter Kim Suhwan] Jamie Dimon, CEO of JP Morgan, the largest bank in the United States, strongly criticized Bitcoin, saying it has no intrinsic value.
According to CNBC on the 4th (local time), CEO Dimon recently stated in an interview with the US online media Axios that "Bitcoin has no intrinsic value, and regulators will do their best to regulate it."
While expecting Bitcoin to exist in the market for a long time, he said, "I have always believed that somewhere in the world, like China did, Bitcoin will be banned. So I think Bitcoin is somewhat fool's gold."
He also pointed out, "If people are using Bitcoin for tax evasion, sex trafficking, ransomware, etc., whether we like it or not, it must be regulated."
Earlier last month, the People's Bank of China, the central bank, announced that all types of virtual currency transactions would be classified as illegal financial activities and would be strictly cracked down on.
The Biden administration in the US also plans to nominate Saoul Omarova, a Cornell University law professor who has criticized virtual currencies, as the new head of the Office of the Comptroller of the Currency (OCC).
In addition, last month, the Biden administration announced regulatory measures targeting various infrastructure facilities that induce ransomware attacks aimed at virtual currencies.
Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), has repeatedly emphasized the need to strengthen virtual currency regulations, indicating that regulatory movements on coins are likely to intensify in the US as well.
Anjali Jariwala, a certified public accountant at Pete Advisors, said in an interview with CNBC that meticulous and sophisticated regulation of virtual currencies would also benefit the US, emphasizing that "regulation is a necessary step for virtual currencies to be incorporated into the mainstream market."
On the other hand, some virtual currency advocates criticize that such regulatory strengthening will suppress innovation and cause domestic companies to relocate overseas.
Meanwhile, CEO Dimon has expressed critical opinions about Bitcoin several times, including in May when he said, "I am not a Bitcoin supporter. I have no interest in Bitcoin at all."
However, he added, "Our bank's customers are very interested in virtual currencies," and "I do not instruct customers on what to do."
In fact, in October last year, JP Morgan opened a new department to handle blockchain projects, and in August, it began offering virtual currency-related fund services to customers.
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