Annual report JPMorgan: cryptocurrency is a threat to the banking, and it’s time for them to adapt

Annual report JPMorgan: cryptocurrency is a threat to the banking, and it’s time for them to adapt

CEO of JPMorgan Jamie Dimon within a few months believed that no government (especially the US) will not allow the cryptocurrency to exist on a large scale. A new report shows that JPMorgan is well aware about the “threat” for their own services, which comes from the cryptocurrency.

Published on Tuesday, the report describes in detail the ways in which the Bank had to change their practices to compete with new technologies and keep clients. Reports about payment processing and other services related to the transfer of the currency was seen as particularly susceptible to “the threat of cryptocurrencies”, which needs no mediation.

“Continuous and increased competition may result in lower prices for products and services JPMorgan or the fact that JPMorgan will lose market share”

In its annual report, published on Tuesday, representatives of JP Morgan recognized that cryptocurrencies, such as Bitcoin and Ethereum can potentially compete with the services of the Bank and extract money even from their very deep pockets.

JPMorgan is not the only major financial company in USA, which recognizes ” the cryptocurrency a threat.” In its report last week, Bank of America recognized the risk of customers to competitors offering products “in areas that we believe are speculative or risky, for example, crypto-currencies”.

The recognition of JP Morgan not unexpected for those who read the research report released more than a week and a half ago, and which received the unofficial title of the “Bitcoin Bible”. The report provides detailed analysis of many of the crypto challenges faced by the banking sector.

The report observed that “banks use blockchain technology for business can have far-reaching implications for the sector”.

In fact, JP Morgan is one of the first major financial institutions that recognize and adapt to reality and cryptocurrencies implements its own blockchain-based platform Ethereum.

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