JPMorgan Chase, a global financial services company, followed Bank of America’s lead and admitted that the rise of cryptocurrencies as a threat to its business.
The bank noted impacts from cryptocurrencies on its payment processing are a “risk factors.” JPMorgan stated that the new technology could disrupt their business.
In its annual 10-K filing with the U.S. Securities and Exchange Commission the bank wrote:
“Furthermore, 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. New technologies have required and 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.”
It’s noteworthy to point out that this is the very first time JPMorgan mentioned cryptocurrencies in its annual filing. The Bank’s chief executive Jamie Dimon had called bitcoin a “fraud,” saying the whole market was in a bubble and would collapse.