Cryptocurrency Is A ‘Risk’ To Our Business – JPMorgan Chasebr>
Global financial services company JPMorgan Chase has recognized that cryptocurrencies pose a threat to its business.
In its annual 10-K filing with the US Securities and Exchange Commission (SEC), the bank listed cryptocurrencies and peer-to-peer technology as potential disruptors to financial institutions and payment processors.
“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 bank said wrote in the report. “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.”
The bank said 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.”
The annual 10-K filing was signed by JPMorgan CEO Jamie Dimon, a bitcoin skeptic who has been deriding the risk of cryptocurrency to fiat institutions for a long time. Last year, he called bitcoin a “fraud” and threatened to fire any employee that traded BTC on company accounts. While Dimon later said he regretted the comments, he has not retracted his view of a possible impending collapse.
Last week, Bank of America (BoA), the second-largest US bank, filed its own 10-K with the SEC and, like JPMorgan’s, that report also listed cryptocurrencies among the risk factors that could impact the bank’s competitiveness and reduce its revenues and profits. The bank also included concerns about following anti-money laundering (AML) and know-your-customer (KYC) regulations, given the lack of regulatory oversight on cryptocurrencies.
Goldman Sachs took a similar tack, saying in its filing with the SEC that the bank could become “exposed to risks related to distributed ledger technology.” Goldman Sachs’ concerns were primarily related to the bank’s investment in startups that operate in the cryptocurrency space. Goldman is an investor in payments startup Circle, which announced that it had acquired crypto exchange Poloniex, and is one of a number of investment banks that offers its customers access to bitcoin futures markets.