Decentralized World Faces Criticism from the Centralized Sphere
In today's news article, the Coinmooner team gathered information about negative remarks toward the decentralized world from one of the most influential people globally. Just yesterday, during a Senate hearing, Jamie Dimon, the head of JP Morgan, criticized the cryptocurrency industry, expressing his dissatisfaction and emphasizing a long-standing opposition. He suggested that if he were in the government, he would advocate for the closure of all cryptocurrencies, including Bitcoin. These statements caused significant excitement and criticism from participants in the Web3 industry.
Dimon expressed the opinion that the primary purpose of cryptocurrencies is associated with facilitating criminal activities, such as drug trafficking, money laundering, and tax evasion. His remarks sparked reactions and discussions in the cryptocurrency community, where many noted the need for a deeper understanding and conversation about the pros and cons of using cryptocurrencies in the modern world. Right now, Jamie Dimon is in charge of one of the world's biggest investment banks called JP Morgan. It's a bank that does both commercial and investment banking and was founded in the USA by John P. Morgan. This bank is the predecessor to two major banking institutions — JPMorgan Chase and Morgan Stanley. The bank offers various financial services in money and currency markets.
In 2020, the bank had a turnover of $14.24 billion, a net profit of $2.99 billion, and its own assets amounted to $203.4 billion. It has around 20.7 thousand employees. JP Morgan Chase provides services like hedging and helps clients develop investment and financial solutions.
JPMorgan Chase manages institutional clients' trust through its subsidiary, J.P. Morgan Investment Management Inc., which handles assets worth $1.3 trillion.
Coinmooner's team analysis indicates that over the years, it's not the first time Jamie Dimon has strongly opposed digital assets. Since 2017, he has been predicting that governments could "crush" Bitcoin, cautioning those considering investing in it. This influential financier consistently casts doubt on the emerging cryptocurrency sector, labeling it as "fraud" and drawing parallels with historical financial manias. In his statements, he highlights the negative aspects of this field, sparking concern and discussions within the financial community.
Interesting that the words of JP Morgan's CEO faced significant criticism from many cryptocurrency enthusiasts worldwide. In response to Jamie Dimon's recent remarks, representatives of the cryptocurrency community quickly pointed out the decentralized nature of Bitcoin. They argued that such regulation would only lead to resistance, restricting freedom of any kind. Many view it as a temporary measure that won't sit well with many people globally.
Moreover, many emphasize the challenges the government will face in attempting to shut it down. Zak Guzman, the founder of Coinage, unequivocally stated,
No one, not even the most powerful person on Wall Street, can shut down Bitcoin.
Dimon's comments underscore the ongoing conflict between the traditional financial sector and the expanding realm of digital assets, effectively creating discord and dividing society. While he continues to express distrust, other institutions in traditional finance are gradually embracing cryptocurrencies. For instance, HSBC, which was previously on the sidelines of the crypto world, recently supported a crypto ETF, becoming the first bank in Hong Kong to do so. Additionally, financial institutions from the Web2 industry actively criticize the cryptocurrency world, targeting entities like Binance and its former CEO.
Arthur Hayes, former CEO of BitMEX, also weighed in on various issues, citing the harsh treatment towards the decentralized world, while financial institutions such as banks easily escape punishment.
During Senate hearings, there was an urgent recognition of the need to update banking laws. Senator Warren insisted on legislation similar to the "Digital Asset Usage in Money Laundering Prevention Act of 2023." This proposed law aims to expand and strengthen banking rules to prevent the illegal use of cryptocurrencies in money laundering operations, ransomware attacks, and financial schemes.
Despite calls for strict measures from regulators and serious doubts expressed by Dimon, the value of Bitcoin has increased by over 150% this year, reaching over $44,000. The Coinmooner team will keep track of cryptocurrency regulation news and provide readers with all the latest events from the Web3 world to keep you informed. We also caution you to stay vigilant and ensure your security in the cryptocurrency world.