JPMorgan CEO Jamie Dimon Says The Government Will 'Stop' Bitcoin
One of these days I'm finally going to get around to writing the piece I've been planning for the better part of a year on the importance of the blockchain and cryptocurrencies, but in the meantime, it's still fun to see the way traditional bankers try to wrap their heads around it. Apparently, for JPMorgan CEO Jamie Dimon, it's to say he's not at all concerned about it because he's sure that the government will step in and kill Bitcoin should it ever really matter:
Talk about regulatory capture...
Of course, that confidence that the US government will kill the innovation is perhaps the biggest weakness of Dimon's argument. We have no doubt that governments are already trying their damnedest to kill off innovation around cryptocurrencies, but the larger question is really whether or not that's even really possible.
Here's the problem for Dimon: should Bitcoin really reach the point at which Wall Street really views it as a true threat, then it's probably too late for it to be stopped. That's one of the (many) interesting parts about cryptocurrencies. The ability to stop them as they get more and more successful becomes significantly more difficult, to the point of reaching a near impossibility. But, it sure will lead to some amusing and ridiculous regulatory fights.
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"Virtual currency, where it's called a bitcoin vs. a U.S. dollar, that's going to be stopped," said Dimon. "No government will ever support a virtual currency that goes around borders and doesn't have the same controls. It's not going to happen."That's kind of an incredible statement when you think about it -- a sort of direct admission that Wall Street knows how tightly it's in bed with Washington DC, that should something like Bitcoin ever challenge Wall Street's power, he has no fear that the politicians will "stop" the virtual currency.
Talk about regulatory capture...
Of course, that confidence that the US government will kill the innovation is perhaps the biggest weakness of Dimon's argument. We have no doubt that governments are already trying their damnedest to kill off innovation around cryptocurrencies, but the larger question is really whether or not that's even really possible.
Here's the problem for Dimon: should Bitcoin really reach the point at which Wall Street really views it as a true threat, then it's probably too late for it to be stopped. That's one of the (many) interesting parts about cryptocurrencies. The ability to stop them as they get more and more successful becomes significantly more difficult, to the point of reaching a near impossibility. But, it sure will lead to some amusing and ridiculous regulatory fights.
Permalink | Comments | Email This Story