Jamie Dimon is not a Bitcoin fan despite JPMorgan filing patent for similar payment system
JPMorgan chief says virtual currency faces major regulatory hurdles
JPMorgan chief executive Jamie Dimon is not a fan of Bitcoin because "a lot of it is being used for illicit purposes".
Speaking at the World Economic Forum in Davos, the Wall Street supremo said the virtual currency is a "terrible store of money" and questioned its legal status over allegations that it is used to fund illegal activities.
"It doesn't have the standing of a government," Dimon told CNBC. "And honestly, a lot of it, what I read from you guys, a lot of it is being used for illicit purposes."
His comments come after the bank filed a US patent application for a computerised payment system, which would allow users to make anonymous transactions, similar to the cryptocurrency.
Dimon, 57, also warned that Bitcoin faces major regulatory hurdles going forward and drew an interesting comparison between the banking industry and the virtual currency.
He added: "Governments put a huge amount of pressure on banks: know who your client is, anti-money laundering, did you do real reviews of that... Obviously it's almost impossible with something like that".
Dimon himself knows a thing or two about regulatory hurdles after the bank agreed to pay about $20 billion to settle investigations into its activities over the past year, including the London Whale fiasco where a trader ran losses of $6 billion.
The bank posted a 7.3 per cent decline in fourth quarter earnings, dragged down by legal costs in connection with former client Bernie Madoff’s ponzi scheme. The bank is set to pay $2.6 billion to US authorities and Madoff victims to settle claims.
JPMorgan had a 20-year relationship with Madoff before his arrest in 2008. Madoff is currently serving a 150-year jail sentence.
Watch him in the video below:
- 1 This 'woman calls police to order pizza' story isn't going where you're expecting
- 2 Axe wielding man shot dead after attacking four New York policemen on busy street
- 3 Watch what happened when food critics were unknowingly served McDonald's
- 4 Jimmy Carr's Oscar Pistorius joke goes a bit too far at the Q Awards
- 5 Ottawa shootings: Bruce MacKinnon's cartoon is the perfect tribute to soldier Nathan Cirillo
Renee Zellweger on plastic surgery rumours: 'I'm living a more fulfilling life and I'm thrilled that perhaps it shows'
FCKH8: YouTube reinstates provocative anti-sexism video showing young girls swearing
Axe wielding man shot dead after attacking four New York policemen on busy street
This 'woman calls police to order pizza' story isn't going where you're expecting
McKamey Manor: This 'extreme' haunted house is the stuff of nightmares
Of course, teenage girls need role models – but not like beauty vlogger Zoella
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Support for EU membership 'at highest level since 1991' with most Brits wanting to stay 'in'
Thousands with degenerative conditions classified as 'fit to work in future' – despite no possibility of improvement
Attacks on 'Ukip Calypso' show how skewed people’s priorities are
Poppy Appeal 2014: This is why I won't be wearing a red poppy this year
iJobs Money & Business
£60000 per annum: Ashdown Group: Compensation and Benefits Manager - Compensat...
£30000 - £35000 Per Annum plus excellent benefits: Clearwater People Solutions...
£24000 - £28000 per annum + bonus & benefits: Ashdown Group: IT Business Syste...
£50000 - £90000 per annum + benefits: Ampersand Consulting LLP: Markit EDM (CA...