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JPMorgan Chase’s president that crypto “is kind of irrelevant in the scheme of things.” Commenting on the US economy, he defended the Federal Reserve’s hawkish stance, stressing that if the Fed’s action “causes a slightly deeper recession for a period of time,” then “that’s the price we have to pay.”
JPMorgan Chase President Daniel Pinto commented on the US economy and cryptocurrency in an interview with CNBC, published on Monday. Pinto is also the Global Investment Bank’s Managing Director and Managing Director of the Corporate & Investment Bank.
The 59-year-old executive grew up in Argentina as a child where inflation was often very high, he shared, noting that living with rampant inflation was “very, very stressful.” Price increases in Argentina averaged more than 300% a year from 1975 to 1991.
Pinto thought:
That’s why I disagree when people say ‘Fed is too hawkish’. I think it’s very important to put inflation back in a box … If it causes a slightly deeper recession over a period of time, that’s the price we have to pay.
The JPMorgan president emphasized that the Federal Reserve cannot allow inflation to take hold in the economy, stressing that a premature return to easier monetary policy risks repeating the mistakes of the 1970s and 1980s.
Commenting on cryptocurrency, the JPMorgan CEO claims that there has been little recent progress in institutional adoption of crypto. Pinto said:
The reality is that the current form of crypto has become a small asset class that is kind of irrelevant in the scheme of things.
However, he noted: “But the technology, the concepts, something is probably going to happen there; just not in its current form.”
Contrary to Pinto’s belief, many large companies and banks are seeing increased institutional interest in crypto, and are increasing their crypto services. Nasdaq established a crypto unit in September, citing increased demand for digital assets among institutional investors. Financial giant State Street recently said it is seeing slowing demand from institutions. In May, Citi, Wells Fargo and BNY Mellon invested in crypto firm Talos citing an acceleration in institutional use of crypto assets.
JPMorgan Chase CEO Jamie Dimon also believes that blockchain and decentralized finance (defi) are real. However, he said that cryptocurrencies, including bitcoin, are “decentralized Ponzi schemes.”
What do you think of JPMorgan Chase President Daniel Pinto’s comments? Let us know in the comments section below.
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