While JP Morgan Chase bank CEO Jamie Dimon has previously suggested that Bitcoin and cryptocurrencies in general are a “fraud,” the company, along with other major financial institutions like Bank Of America, are freaking out behind closed doors.
A new report from Zero Hedge highlights just how serious the threat is to the establishment banking system and suggests that everything from regular deposit activity to merchant processing solutions could be adversely affected as broad adoption of blockchain technologies gains steam.
As CoinTelegraph’s Molly Jane Zuckerman reports, J.P. Morgan Chase has added a segment on cryptocurrencies to the “Risk Factor” section of their 2017 annual report to the US Securities and Exchange Commission (SEC), filed yesterday, Feb. 27.
The annual report mentions cryptocurrencies under the “Competition” subsection when describing how new competitors have emerged that threaten J.P. Morgan’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.”
The report notes that these new technologies, evidently including Blockchain, although they don’t mention it by name, “could 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.”
This competition could potentially “put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share.”
Bank of America is freaking out too:
JPMorgan is not alone, as TruthInMedia.com’sBrendan Weber reports, in Bank of America’s new annual report filed with the U.S. Securities and Exchange Commission (SEC), the corporation largely reflected internally about a number of economic, geopolitical, and operational risks faced.
One of those stated risks is surrounding the increased adaptation of cryptocurrencies, which could have negative effects on the corporation’s earning potential.
Increased adaptation of cryptocurrencies also had Bank of America admitting that it may need to make “substantial expenditures” to compete with these rising technologies:
Last month Block Cubed reported that JP Morgan Chase banned the use of credit cards for the purchase of crypto currency assets.
Now we know why.
And we have absolutely no sympathy for them, just as they have no sympathy for hard working individuals when they charge exorbitant account fees, interest rates and often make life a living hell for their customers.