JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon has issued new remarks about bitcoin, dismissing the digital currency's potential to survive in the long run.
Speaking at the Fortune Global Forum, Dimon said people were wasting their time and money with digital currencies industry such as bitcoin. "This is my personal opinion; there will be no real, non-controlled currency in the world. There is no government that's going to put up with it for long ... there will be no currency that gets around government controls."
According to Dimon, bitcoin's underlying block chain technology has a brighter future: "The technology will be used, it may even be used to transport currency but it will be US dollars."
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency's block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.
Although cautious, the bitcoin skeptic said that JPMorgan – which participated in the series a funding round with distributed ledger startup R3CEV – was optimistic about the potential uses of block chain technology.
In April this year, Dimon said his bank could learn from disruptive payment systems such as bitcoin in his annual letter to JPMorgan shareholders: "You all have read about bitcoin, merchants building their own networks, PayPal and PayPal look-alikes. Payments are a critical business for us – and we are quite good at it. But there is much for us to learn in terms of real-time systems, better encryption techniques and a reduction of costs and 'pain points' for customers."
Bitcoin’s price went up for about 2% hit $380 per bitcoin this Monday.