Cryptocurrencies pose risks for banks' activities

In its annual SEC report, J.P. Morgan noted that competition from cryptocurrency poses risks to its business. This is stated in the “risks” paragraph of its 2017 annual report filed with the US Securities and Exchange Commission (SEC).

Cryptocurrency is also mentioned in the “competition” sub-clause, which refers to the emergence of new competitors that pose a threat to the activities of J.P. Bank. Morgan: "Both financial institutions and their non-bank competitors face the risk that payment processing and other services may be impacted by technologies that allow payments to be processed without intermediaries."

The report says that these new technologies, apparently referring to blockchain technology although it does not mention the name, "could result in JPMorgan Chase having to modify or adapt its products to attract and retain customers or to match the products and services offered by its competitors, including technology company."

This competition could potentially "lower JPMorgan Chase's prices and fees or could cause JPMorgan Chase to lose market share."

J.P. CEO Morgan Chase Jamie Dimon previously called the BTC coin a "scam" and threatened to fire any employee who uses the company's accounts to trade BTC. Dimon has since changed his views and told a Cointelegraph reporter at the World Economic Forum in Davos that he is "not skeptical" about the cryptocurrency.

In early February, an internal report from J.P. Morgan Chase noted that cryptocurrency is “innovative” and “unlikely to disappear”, and also noted the possibility of using cryptocurrency to simplify cross-border payments, which are currently too slow.

According to http://www.livebitcoinnews.com