Facebook’s Libra digital currency project is “a neat idea that will never happen,” JPMorgan Chase Chief Executive Jamie Dimon said on Friday, adding to scepticism about the project that has faced criticism from policymakers and some regulators.
Dimon, who made the comments at an event in Washington hosted by the Institute of International Finance, did not elaborate on why he believed Libra was a non-starter.
But the Wall Street Journal reported this week that JPMorgan had declined to join the project due to concerns the digital currency could be used for criminal activities that would violate money-laundering and sanctions rules.
The ambitious efforts of Facebook Inc to establish a global digital currency have suffered severe setbacks in recent weeks, after several high profile partners including Visa, Mastercard, PayPal and eBay abandoned the project.
The exodus followed a pushback from policymakers and regulators in the United States and Europe over concerns Libra could upend the global financial system, threaten users’ privacy and facilitate money laundering.