JPMorgan Chase CEO Jamie Dimon has given personal advice to investors regarding investing in cryptocurrencies, like bitcoin. He said that his own personal advice to people is to â€œstay awayâ€ from cryptocurrencies. However, his bank, JPMorgan, will not stay away as clients want exposure to this asset class.
Jamie Dimonâ€™s Personal Advice to Investors About Bitcoin, Other Cryptocurrencies
Jamie Dimon, the CEO of JPMorgan Chase, the largest bank in the U.S., gave his congressional testimony before the House of Financial Services Committee regarding cryptocurrency on Thursday. While admitting that JPMorganâ€™s clients are interested in investing in bitcoin, Dimon said:
â€œWe are debating should we make it available in some way, in a safe way, that people can buy and sell itâ€ and put it in their financial statements and balance sheets, the JPMorgan CEO continued. â€œBut my own personal view, itâ€™s nothing like a fiat currency. Itâ€™s nothing like gold. Buyer beware.â€
Dimon clarified that his statements only apply to cryptocurrencies, not blockchains or stablecoins, which are â€œsupported by assets,â€ he said.
The JPMorgan boss further emphasized that his personal views do not influence the financial services that JPMorgan Chase offers to its clients. â€œA lot of our clients are asking, â€˜can we help them buy or sell cryptocurrency?â€ Dimon said at JPMorgan Chaseâ€™s annual shareholder meeting last week. â€œAnd weâ€™re investing in that as we speak.â€
The JPMorgan executive further said during his congressional testimony Thursday:
Reiterating his view expressed in April that cryptocurrencies are emerging issues that need to be dealt with quickly, Dimon said in his congressional testimony that the crypto asset class could benefit from more regulation.
â€œI do think that eventually the regulators who are a day late and a dollar short should be paying a lot more attention to the future, like payment for the order flow, a high-frequency trading, cryptocurrency, and put a legal regulatory framework around it,â€ he opined.
Dimon has long been a bitcoin skeptic. He called the cryptocurrency a fraud back in September 2017. Now JPMorgan is slowly getting into the crypto space. In March, the bank launched a crypto investment product tracking public company stocks with bitcoin exposure. The bank is also reportedly working on providing clients access to bitcoin investments.
JPMorgan recently highlighted three reasons for investing in bitcoin after its analysts predicted that the price of the cryptocurrency could reach $146K as its competition with gold heats up. The firm subsequently lowered its bitcoin price estimate to $130K but said that clients can put 1% of their portfolios in BTC. Last week, JPMorgan initiated coverage of the Coinbase stock with an overweight rating and a 60% upside from the current price.
What do you think about Jamie Dimonâ€™s personal advice to investors about bitcoin and cryptocurrencies? Let us know in the comments section below.
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