J.P Morgan Sees Crypto As ‘Competition’ And ‘Risk’ To Its Business In SEC Annual Report

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Cryptocurrencies has just been added as a segment under JPMorgan Chase’s “Risk Factor” section of their 2017 annual SEC report.

Specifically, cryptocurrencies are mentioned under the subsection named “Competition,” and described as something that could potentially threaten the firm’s operations. “Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies, such as cryptocurrencies, that require no intermediation.”

This threat from the new technologies, including Blockchain, could allegedly “require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies,” which, for the firm, could effectively “put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share.”

The company has been very vocal thus far in their stance on cryptocurrency, with CEO Jamie Dimon even calling Bitcoin (BTC) a “fraud” back in September 2017. He also let out a warning then that any employee trading BTC on company accounts will be fired. However, a little while later, in February of this year, he has seemed to scale back on its vitriol for cryptocurrencies, referring to them as “innovative” and “unlikely to disappear.” He also acknowledged its potential for improving payment systems, like cross-border ones, that are otherwise currently problematic.

 

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