The fact that we’re still talking about Bitcoin seems to suggest that it has some staying power.
However, Jamie Dimon believes its standing as a currency will eventually end.
Dimon, who is the CEO of JP Morgan, spoke with CNBC’s Andrew Ross Sorkin about the so-called digital cryptocurrency. And he went on the attack.
“It’s a terrible store of value,” said Dimon. “It could be replicated over and over.”
That speaks to the logistical issues.
But what’s worse is arguably the regulatory hurdles.
“It doesn’t have the standing of a government,” added Dimon. “And honestly, a lot of it — what I’ve read from you guys — a lot of it is being used for illicit purposes. And people who will get upset with it is governments. Governments put a huge amount of pressure on banks: know who your client is, did you do real reviews of that. Obviously it’s almost impossible to do with something like that.”
However, Dimon doesn’t think Bitcoin will go away altogether.
“They will eventually be made as a payment system to follow the same standards as the other payment systems and that will be probably be the end of them,” he said.
This is coming from someone who is arguably one of the most powerful bankers in the world.