JPMorgan Chase CEO says cryptocurrency “has nothing to do with the scheme of things.” Commenting on the US economy, he defended the Fed’s hawkish stance, stressing that if the Fed’s action causes “a little bit deeper recession for a while,” that’s the price we have to pay.
JPMorgan Chase Chairman on the US economy and recession
JPMorgan Chase President Daniel Pinto commented on the US economy and cryptocurrency in an interview with CNBC, published Monday. Pinto is also Chief Operating Officer of the Global Investment Bank and CEO of Corporate and Investment Bank.
The 59-year-old CEO grew up in Argentina as a child where inflation was very high, he said, noting that living with rampant inflation was “extremely stressful.” Price increases in Argentina averaged more than 300% per year from 1975 to 1991.
That’s why when people say, “The Fed is too hawkish,” I don’t agree. I think putting inflation back in the fund is very important…if it causes a little deeper recession for a while, that’s the price we have to pay.
The JPMorgan chief stressed that the Fed cannot allow inflation to become ingrained in the economy, stressing that an early return to easier monetary policy risks repeating the mistakes of the 1970s and 1980s.
Cryptocurrencies are ‘kind of irrelevant’
Commenting on cryptocurrency, the JPMorgan executive claims that little progress has been made recently with regard to institutional adoption of cryptocurrencies. Pinto said:
The fact is that the current form of cryptocurrency has become a rather small and irrelevant asset class in the scheme of things.
However, he noted, “But the technology, the concepts, something is likely going to happen there. Just not in its current form.”
Contrary to Pinto’s belief, many major companies and banks are seeing a growing institutional interest in cryptocurrencies, and are ramping up their crypto services. Nasdaq It established a crypto unit in September citing increased demand for digital assets among institutional investors. financial giant State Street She recently said she sees an unbalanced demand from institutions. in May, City, Wells Fargo, and BNY Mellon It invested in crypto company Talos citing the acceleration in institutional adoption of crypto assets.
Jamie Dimon, CEO of JPMorgan Chase, also believes that blockchain and decentralized finance (a challenge) are real. However, he said cryptocurrencies, including bitcoin, “Decentralized Ponzi schemes. “
What do you think of the comments of JPMorgan Chase President Daniel Pinto? Let us know in the comments section below.
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