Major banks accept cryptocurrency its competitors
Despite the fact that JPMorgan Chase CEO Jamie Dimon called bitcoin "fraud", the Bank is now very serious about the cryptocurrency directly recognizing blockchain technology as a threat to its future.
In the annual report of 27 February, the Bank JPMorgan Chase first called bitcoin and Ethereum "risk factors" for its business, recognizing the digital currency of the new forms of competition that could make him sweat for your money and even lower prices.
The Bank wrote in the report:
...Payment processing and other services may face serious competition from new technologies such as cryptocurrencies, which do not require mediation.
JPMorgan also admits that new technology has required the company to invest in adaptation or modification of their products to compete with new proposals, "technology upstarts", and this trend is expected the Bank will continue:
Increasing competition can exert a downward effect on prices of products and services to JPMorgan, as well as on the Commission, or may cause the Bank to lose market share.
The position of the Bank similar to that which was expressed by Bank of America in its annual report last week. In its statement, the BoA notes the potential risk that customers may go to competitors offering products and services "in those areas that we believe are speculative or risky, such as digital currencies".
The representative of JPMorgan Chase declined to comment on why the company decided to add cryptocurrency to the risk factors. However, the Bank is sympathetic to the revolutionary potential of the blockchain technology and was one of the first developers own blockchain based on Ethereum. In early February, Umar Farooq, head of the blockchain initiatives JPMorgan Chase, suggested the possibility of introducing the technology within the Bank.
February 7 at the summit Yahoo Finance All Markets in new York, he said:
[Blockchain] more than thriving. People never cease to amaze the rapid spreading of this technology that meets the needs of the clients and enable them to care for them by choosing an individual approach. Incredible!
In a week, JPMorgan Chase issued a 71-page research report, which became known as the "bitcoin Bible" through careful analysis and exploration of a wide spectrum of issues related to bitcoin and other cryptocurrency such as Ripple. Assessing the existing Bank initiatives to blockchain and cryptocurrency Bank analysts came to the conclusion:
In our opinion, the use of blockchain technology to banking business can have far-reaching consequences for the entire sector.