July 23, 2024


JPMorgan Chase’s president that crypto “is kind of irrelevant in the scheme of things.” Commenting on the U.S. economy, he defended the Federal Reserve’s hawkish stance, emphasizing that if the Fed’s action “causes a slightly deeper recession for a period of time” then “that is the price we have to pay.”

JPMorgan Chase President on U.S. Economy and Recession

JPMorgan Chase President Daniel Pinto commented on the U.S. economy and cryptocurrency in an interview with CNBC, published Monday. Pinto is also the global investment bank’s chief operating officer and CEO of its 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 pervasive inflation was “very, very stressful.” Price increases in Argentina averaged more than 300% a year from 1975 to 1991.

Pinto opined:

That’s why when people say, ‘the Fed is too hawkish,’ I disagree. I think putting inflation back in a box is very important … If it causes a slightly deeper recession for a period of time, that is the price we have to pay.

The JPMorgan president stressed that the Federal Reserve cannot allow inflation to become ingrained in the economy, emphasizing that a premature return to easier monetary policy risks repeating the mistakes of the 70s and 80s.

Crypto Is ‘Kind of Irrelevant’

Commenting on cryptocurrency, the JPMorgan executive claims that there is little progress recently in terms of the institutional adoption of crypto. Pinto said:

The reality is, 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.”

In contrast to Pinto’s belief, many big companies and banks are seeing increased institutional interest in crypto, and are ramping up 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 that it sees unwaning demand from institutions. In May, Citi, Wells Fargo, and BNY Mellon invested in crypto firm Talos citing an acceleration in institutional adoption 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.”

Tags in this story
Daniel Pinto, Daniel Pinto bitcoin, Daniel Pinto crypto, Daniel Pinto cryptocurrency, Daniel Pinto inflation, Daniel Pinto recession, Fed hawkish, jpmorgan, jpmorgan inflation, JPMorgan president, JPMorgan recession, JPMorgan US economy

What do you think about the comments by JPMorgan Chase President Daniel Pinto? Let us know in the comments section below.

Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.


Source link