JPMorgan Bitcoin Trades Continue Despite CEO Fraud Warning

Jamie Dimon, the Chief Executive of JPMorgan Chase launched an attack on the Bitcoin crypto-currency last week by labeling it a fraud and compared it to the tulip bulb fraud that took place in the 17th century. His negative remarks saw the Bitcoin crypto-currency drop by more than 2 percent.

Dimon continued to hammer Bitcoin during an investor conference in which he said that if JPMorgan had a trader that traded Bitcoin, he would immediately fire them on the basis that it was against the company’s policy and also because the trader was stupid for dealing in Bitcoin which was dangerous.

Bitcoin supporters and enthusiasts did not like Dimon’s negative remarks and lashed out at the chief executive on social media. They also highlighted the fact that although Dimon has stated that JPMorgan would not associate itself with Bitcoin trades, the company has continued to process customer orders for Bitcoin related instruments. Zerohedge, a financial blog questioned JPMorgan’s decision to process Bitcoin related transactions when its chief executive had labeled the crypto-currency as fraudulent.

There are a number of US banks including JPMorgan that serve as agents for Bitcoin buyers and sellers. Banks like Credit Suisse Group AG, Goldman Sachs Group Inc and Morgan Stanley process Bitcoin related transactions. There are also other major banks across the world including JPMorgan who are investing heavily into blockchain technology which is the platform that Bitcoin operates under. Banks are looking to implement blockchain technology as it can be used to speed up daily trade transactions and also provide a more secure and robust environment for its customers.

The Bitcoin crypto-currency has grown by more than 300 percent during the last 9 months and the value for 1 Bitcoin is currently hovering around $4,025. The currency has proven to be extremely volatile and there are mixed opinions about how it will perform in the coming months.

Some analysts predict that Bitcoin could go up to $6,000 in the next couple of years whereas others predict that the bubble will burst.

JPMorgan defended itself against the criticism of processing Bitcoin transactions stating that these were not direct JPMorgan orders but from their clients who were carrying out third party orders that were linked to Bitcoin exchanges. While that explanation might make technical sense, Bitcoin supporters want to know why JPMorgan would have any kind of link with Bitcoin when its CEO has termed it fraudulent.

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