JPMorgan CEO Calls Bitcoin 'Useless' and Says It's 'Used Heavily by Sex Traffickers, Money Launderers, Ransomware'

JPMorgan CEO Labels Bitcoin as Worthless

Jamie Dimon, the CEO of JPMorgan Chase, has again cast doubt on the legitimacy of Bitcoin, calling the cryptocurrency "useless" and "without intrinsic value."

In an interview with CBS News' Lesley Stahl, Dimon reaffirmed his skepticism about the popular digital currency, stating,

"Bitcoin itself has no intrinsic value. It's used heavily by sex traffickers, money launderers, ransomware."

Dimon has long been critical of Bitcoin, previously comparing it to "pet rocks" and even labeling it a "Ponzi scheme."

Despite the growing hype around digital currencies, Dimon remains unimpressed by Bitcoin’s place in the financial world.

Dimon commented,

"I just don't feel great about Bitcoin. I applaud your ability to wanna buy or sell it. Just like I think you have the right to smoke, but I don't think you should smoke."

His remarks come as Bitcoin’s value surged by 121% in 2024, surpassing $100,000 for the first time in December.

Dimon, however, doesn't see its value as something sustainable or meaningful.

But Blockchain Technology is A Different Story

While Dimon is critical of Bitcoin, he acknowledges the broader potential of blockchain technology.

A blockchain is a digital database that stores data in linked "blocks," creating a secure and transparent way to process transactions.

Dimon explained that JPMorgan is already utilising blockchain technology, with the bank incorporating it for moving money and data.

Dimon said,

"The use of blockchains for money, moving money, moving data, we already use it.”

He added,

“Blockchain itself will work and that is kind of crypto."

He also made room for stablecoins—digital currencies pegged to tangible assets such as national currencies or commodities—by recognising their legitimacy.

Though he recognises that “stablecoins are real”, he exclaimed,

“How they're used and how they're protected by regulators is an issue they have to deal with."

Cryptocurrencies and the Dark Side

Despite his support for blockchain, Dimon remains wary of the darker uses of cryptocurrencies.

He noted that Bitcoin, in particular, has been used in illicit activities, including sex trafficking, money laundering, and ransomware attacks.

He warned that the cryptocurrency market still faces significant regulatory challenges as authorities attempt to deal with these issues.

A Complex View on Wealth Inequality

Dimon also discussed his views on the growing wealth disparity in the United States, though his stance was measured.

He didn’t directly criticise the wealth of billionaires but pointed out the importance of a thriving economy that benefits all.

Dimon remarked,

"I think you have to be very careful to say, 'What's outta whack?' You want a healthy economy, and a really healthy economy lifts up all citizens."

While Dimon expressed that he wasn’t concerned with the growing wealth of the ultra-rich, he acknowledged the need for reforms in areas such as tax laws to ensure fairness.

He said,

"If I was king for a day, I would probably change a bunch of the tax laws."

However, Dimon made it clear that his primary concern is the stagnation of the bottom 30% of earners, noting,

"The wrong part is that the bottom 30% didn't do better."

He believes that addressing this issue is more critical than focusing on the wealth at the top.

On the World’s Wealthiest: Elon Musk

When asked about Elon Musk, the wealthiest individual in the world, Dimon praised Musk’s talents but avoided delving into the controversy surrounding Musk’s influence in politics.

Elon Musk

Dimon commented,

"He’s clearly an extraordinary talent. I mean, to look at Tesla and SpaceX, yeah, well, we should make government more efficient. Is this the way to do it? I don’t know. Do I want them to succeed? Absolutely."

Dimon downplayed the criticism surrounding Musk’s involvement in right-wing politics in Europe, adding,

"When you say it’s odd, it’s not that odd. It’s been going on in this country for a long time."

He dismissed calls for Musk to be labelled an "American oligarch," calling it "name-calling."

Dimon’s Reflections on Health and Retirement

Dimon’s professional and personal life have been marked by several health challenges.

He is a cancer survivor, having overcome throat cancer a decade ago, and recently faced a serious heart scare in 2020, when he underwent surgery for an aortic dissection.

Dimon shared that the experience changed him, making him "a little more deliberate, a little more thoughtful" about life.

Despite being 68, Dimon remains energetic and passionate about his role as CEO of JPMorgan.

He is not ready to step down just yet, even though he hinted that retirement might come sooner rather than later.

Jamie Dimon has been the chairman and CEO of JPMorgan Chase since 2006.

Dimon remarked,

"Last time I was asked, I said, less than five years. But when you say retire, I’m not going to retire like that. I may write a book. I may teach. I may work with my kids, if they want."

Dimon’s Impact on JPMorgan and the Economy

Under Dimon’s leadership, JPMorgan has thrived, doubling its workforce to 320,000 employees and growing its assets by nearly $3 trillion.

Dimon expressed pride in his company’s ability to open branches in underserved communities, particularly in Harlem, where he highlighted the bank’s success in helping people secure home loans.

He shared,

"In one of these community branches, a guy stood up and he said he finally bought a home that he’d lived in for 30 years. He said there’s no way he could have gotten that mortgage if one of our mortgage loan officers didn’t call him every day for months."

Through this unwavering support, the man was eventually able to secure the homeowner’s grant.

Though Dimon has revolutionised JPMorgan, his future retirement remains uncertain.

He hinted that he might transition into a more advisory role, possibly as chairman.

However, for now, his focus is on the bank’s continued success.

"I love my job. I love what it does. I like our people," Dimon stated, adding that despite the pressures, his work motivates him to keep going.

Dimon’s views on Bitcoin, blockchain, the economy, and the future of banking demonstrate a cautious but pragmatic approach to emerging technologies and wealth management, and his words continue to carry weight in global financial circles.