JP Morgan Chase, an American multinational banking services holding company headquatered in New York City, is famous for its negative position towards Bitcoin and cryptocurrency. in October 2017, Jamie Dimon, CEO of JPMorgan, faced a lot of controversy after saying that Bitcoin is a fraud, and stating that it is necessary to fire anyone “stupid enough to trade Bitcoin.”
As it was revealed by Fortune, JPMorgan Chase released the annual report on February 27, where it named cryptocurrencies like Bitcoin and Ethereum “risk factors” to its business. It was the first time, when the financial giant publicly admitted that the digital currencies are new forms of competition that could "give the bank a run for its money".
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.
JP Morgan Report
JP Morgan claimed that the increasing market competition is very likely to put the pressure on prices and fees for JPMorgan Chase’s products and services and can cause JPMorgan Chase to lose market share. It seems that taking into consideration the escalating popularity of digital currency, even the banking giants are starting to be afraid of the impact it may have on their businesses.
It is worth reminding that we have previously reported that JP Morgan was facing some allegations from Swiss Financial Market Authority for breaking rules of money laundering. Moreover, JP Morgan Chase had announced the launch of Interbank Information Network based on Quorum blockchain in order to reduce delays in payments between banks.