Published: Thu, January 11, 2018
Hi-Tech | By Cory Rios

Dimon Backpedals on Bitcoin

Dimon Backpedals on Bitcoin

Blockchain technology eliminates any need for a third party intermediary by creating a permanent, open record of all transactions on a network. However, speaking at a conference yesterday, Dimon said about his statements that "I regret making them".

Despite such steadfastly sceptical attitude and Dimon's promise to fire anyone working for J.P. Morgan, who would be caught investing in Bitcoin, the bank didn't stop moving towards new technologies and considered allowing its clients to trade bitcoin futures. He is unsure of how "governments are going to feel about bitcoin when it gets really big", a widely shared concern as the currency has gone up over 1,500 percent within the past year alone. "You can't have a business where people can invent a currency out of thin air and think that people who are buying it are really smart", Dimon said at a bank investor conference in NY.

Bitcoin was rising then, valued between $3,500 to $4,500 in September 2017 - but its value exploded in October, skyrocketing up to and all time peak of nearly $20,000 in December.

In India, a bitcoin can be bought for Rs 10.77 lakh and be sold for Rs 10.12 lakh on Bengaluru-based Unocoin, a bitcoin trading platform.

More news: Kodak Launches Cryptocurrency, Stock Soars

"I'm not interested that much in the subject at all", he added.

While some investors and bank chiefs have been skeptical of cryptocurrencies, they've lauded blockchain as a promising way to speed up payments and contracts. Dozens of US banks already boasting record profits have promised bonuses, raises or additional benefits for employees to be funded with savings from the new tax rate.

Dimon said that he was considering more how the new tax code would affect his company in the long term. "It's going to have a huge cumulative effect".

With a lower tax rate comes more competition among businesses, but in Dimon's opinion, over time a competitive tax system is "good for America". He now is a member of Trump's business forum, which advises the president on economic issues.

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