JP Morgan: Jamie Dimon, taxes and Bitcoin controversies
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JP Morgan: Jamie Dimon, taxes and Bitcoin controversies

By Rossana Prezioso - 2 Feb 2019

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Jamie Dimon, CEO of JP Morgan Chase, comes out with a statement following the proposal to raise taxes for all those in the upper-income brackets.

According to reports, the number one US bank would be willing to pay higher taxes, as long as the money goes where it’s needed.

The proposed US tax law

The proposal to raise the tax rates charged to the wealthy comes from the Democratic area, precisely from Alexandria Ocasio-Cortez, the newly elected representative of New York, and Senator Elizabeth Warren, delegate of Massachusetts.

The bill aims to calm the many tensions that have arisen over the increase in fundamental inequalities in US society.

Specifically, this is the application of a tax rate of 70% to be imposed on all incomes above $10 million per year. According to the bill, the proceeds should be directed toward increasing investment in funds for projects that support the weaker sections of society.

Jamie Dimon’s Bitcoin gaffe

Recently, Jamie Dimon has been at the centre of a major controversy related to cryptocurrencies. After defining the largest cryptocurrency, bitcoin, as the biggest scam in history, he has not hesitated to define stupid all those who invest in the virtual currency. Then it was discovered that one of the most fervent supporters of the currency in question was his own daughter.

jp morgan jamie dimon taxes

JP Morgan buys bitcoin

Shortly after his statements against bitcoin, it was discovered that JP Morgan had become its first buyer. Followed by another big name that was particularly well known in financial news: Morgan Stanley.

Technically JP Morgan did not buy bitcoin directly, since banks on Wall Street are forbidden to invest in unofficial tools, but through XBT, an exchange-traded note (ETN), a financial tool on the false line of ETFs, which replicates the trend of the underlying, in this case, the bitcoin/dollar exchange rate.

The real strength?

This would also explain his latest statements in Davos. Speaking on the sidelines of the World Economic Forum, held last week in Davos, Jamie Dimon said he was not at all happy with the collapse of bitcoin.

Looking at the numbers, in fact, it’s -82% from the highs of almost 20 thousand dollars, reached just over a year ago. But he reserved words of praise for blockchain technology, which, according to him, will be successful.

Rossana Prezioso
Rossana Prezioso

Passionate about the new frontiers of online publishing, she decided to further deepen her knowledge by dedicating herself to the study of cultural and economic changes derived from the emergence of hi-tech finance, developing the themes concerning new business models related to it and the geopolitical influences of the new cryptocurrency economy.

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