Last week, Jamie Dimon, CEO of JPMorgan, spoke with CNBC and made a statement that would anger thousands of bitcoiners around the world: bitcoin (BTC) is “a terrible store of value” and that its classification as a currency will eventually come to an end.
One of the most powerful bankers in the world argued that the cryptocurrency is not endorsed by a government, it can be replicated numerous times by users and it is being utilized for illegal purposes. Despite his negative viewpoints on bitcoin, Dimon does believe it will stay as an electronic payment system and follow the same regulations and standards as other payment structures.
These remarks have led others to simply say that Dimon lacks understanding of what bitcoin is and how it works.
Speaking with Bloomberg Television Wednesday, Patrick Murck, Bitcoin Foundation’s lawyer, criticized the JPMorgan head and explained that he was wrong to think the regulations would end the bitcoin economy.
“That just shows he doesn’t understand it,” said Murck. “It can be useful and fit into the current regulatory environment at a much lower fee structure than the credit card industry and traditional payment methods.”
It’s no secret that the bitcoin marketplace is being targeted by both law enforcement and government department regulators for the cyrptocurrency’s illicit usage and potential threat against the finance sector and the United States dollar.
The New York Department of Financial Services is holding a two-day public hearing this week to discuss regulations and potential BitLicenses for businesses that deal with bitcoin transactions. It also comes as authorities arrested two bitcoin entrepreneurs and are being held on money laundering charges.
New York prosecutors concur that bitcoin needs tighter rules and restrictions than conventional financial institutions.
“Without stronger government oversight, we are allowing cybercriminals, identity thieves, traffickers of child pornography, and other malevolent actors to operate in a digital Wild West,” Cyrus Vance Jr., the district attorney for Manhattan, said at a hearing Tuesday about digital currency regulations.
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