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 Apple has installed security backdoors on 600m iPhones and iPads, claims security researcher
- 2 Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
- 3 Louis van Gaal gets tough with Manchester United players, with Darren Fletcher and Luke Shaw berated in public and Phil Jones left looking bemused
- 4 Is Gideon Levy the most hated man in Israel or just the most heroic?
- 5 Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Malaysia Airlines MH17 crash: Pro-Russian rebel 'admits to shooting down plane'
Israel-Gaza conflict: Deadly flechette shells 'used by Israeli military in Gaza Strip’
Malaysia Airlines MH17 crash: Blogger captures footage ‘showing BUK missile launcher that shot down jet’ now back in Russia
Peaches Geldof inquest: Tragic final moments of socialite's life reveal she lied to husband about failed heroin tests
Israel-Gaza conflict: The myth of Hamas’s human shields
Malaysia Airlines flight MH17 crash: 'Nine Britons, 23 Americans and 80 children' feared dead after Boeing passenger jet is 'shot down' near Ukraine-Russia border
Malaysia Airlines MH17 crash: Vladimir Putin is given 'one last chance' to end hostilities in Ukraine
The 'scroungers’ fight back: The welfare claimants battling to alter stereotypes
The truth about conspiracy theories is that some require considering
Malaysia Airlines MH17 crash: Ukrainian military jet was flying close to passenger plane before it was shot down, says Russian officer
Malaysia Airlines MH17 crash: victims’ bodies bundled in black bags and loaded onto trains
iJobs Money & Business
£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...
£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...
£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...
£380 - £480 per day: Orgtel: Business Analyst - Banking - Edinburgh - £380 - ...