JP Morgan’s CEO has been backpedaling on calling Bitcoin a fraud for months now but he has stuck to the line that no government (especially the US) will allow cryptocurrency to exist on a large scale. A new report shows though that JP Morgan is very aware of the ‘risk’ cryptocurrency puts on its own services and how they are dealing with it.
In its annual report released on Tuesday, JP Morgan recognized that cryptocurrencies such as Bitcoin and Ethereum are potential competition to the bank’s own services that could potentially take money from their very deep pockets. CEO Jamie Dimon has been on record deriding the risk of cryptocurrency to fiat institutions for a long time.
He has also publicly recognized that the underlying blockchain technology will most likely be implemented to move currency but has added, that the currency would be dollars, not Bitcoin. The report released on Tuesday details ways in which the bank has had to change its practices in order to compete with the new technologies in order to retain customers.
Payment processing and other currency transfer services were highlighted by the report as being especially susceptible to technologies like cryptocurrency that require no inter-mediation. “Ongoing or increased competition may put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share,” JP Morgan isn’t the only major financial institution in the US to come around to the ‘threat of cryptocurrency’.
In their own report, last week Bank of America recognized the risk of losing their own customers to competitors offering products “in areas we deem speculative or risky, such as cryptocurrencies.” This reported recognition by JP Morgan doesn’t come as much of a surprise to those who have read the 71-page research report released more than a week and a half ago that some have dubbed the ‘Bitcoin Bible’. The report gives a thorough analysis of multiple cryptocurrency issues the banking industry faces. Read more from newsbtc.com…
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