JP.Morgan finally declares cryptocurrencies are a threat to their business
Cryptocurrencies are indeed a headache for banks as more of them are now opening up to the threat it poses to their business and survival. JP.Morgan finally declares cryptocurrencies are a threat to their business for the first time in their annual report on Tuesday.
JP.Morgan has featured in many cryptocurrency related news in the past weeks and months mostly for the negative reasons. After calling Bitcoin a fraud, it was clear Jamie Dimon didn’t see a fraud but saw a real threat when he made that statement.
On Tuesday, JP Morgan released their annual report where the bank acknowledged that cryptocurrencies are “Rick factors” to their business according to Fortune. This is also the first time the bank also has clearly acknowledged the risk cryptocurrencies pose to their business though It recently also withdrew its statement of calling Bitcoin a fraud.
“Both financial institutions and their non-banking competitors face the risk that payment processing and other services could be disrupted by technologies such cryptocurrencies, that require no intermediation,” JP Morgan wrote in their recent report.
However, they are not the first major American bank to clearly state the risk cryptocurrencies pose to their business. Bank of America also made similar statements last week in their annual report where they see a risk of losing clients to emerging technologies and mediums of exchange such as cryptocurrencies.
This sums up to say most banks either stopping or limiting their clients from trading cryptocurrencies or using credit cards for purchases under the pretext of “protecting” customers or preventing money laundering might be doing so to save the future of their business in order to stay relevant in the financial space.
State Bank of India’s head of Innovation also commented on the topic by saying;
“By 2030, traditional banking services could cease to exist with Blockchain. All services of banks can be replaced by blockchain”
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