JP Morgan Chase Report Reveals Bank Is Afraid Of Cryptocurrency

JP Morgan Chase filed an Annual Report for 2017,  and what was exposed is nothing short of hilarious. JP Morgan ran by  cryptocurrency fudder Jamie Dimon finally admitted they are scared of  cryptocurrency disrupting their business model. 

The document which is normally just for shareholders this year, however,  the report contained an unusual insight into the financial  institutions’ mindset. 

Under the section Competition, deep in the report, JP Morgan writes:

  “The financial services industry is highly competitive, and JPMorgan  Chase’s results of operations will suffer if it is not a strong and  effective competitor. JPMorgan Chase operates in a highly competitive  environment, and expects that competition in the U.S. and global  financial services industry will continue to be intense,” the report  read. 

 “These advances have also allowed financial institutions and other  companies to provide electronic and internet-based financial solutions,  including electronic securities trading, payment processing and online  automated algorithmic-based investment advice. 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,” the document stated. 

 Cryptocurrencies can have the eventual impact of putting “downward  pressure on prices and fees for JPMorgan Chase’s products and services  or may cause JPMorgan Chase to lose market share,” the reported  revealed. 

Another noteworthy newsy passage of the report may foretell what JP Morgan’s next steps are with cryptocurrency. 

 “Increased competition also may require JPMorgan Chase to make  additional capital investments in its businesses, or to extend more of  its capital on behalf of its clients in order to remain competitive,”  the report stated. 

In other words, JP Morgan Chase may have to join cryptocurrency or allow derivatives to stay in the game and remain competitive. 

Last year, Jamie Dimon bashed  Bitcoin and cryptocurrency in general for months increasing the fud  then in September JP Morgan purchased the Bitcoin exchange-traded note  (ETNs) trading on Nasdaq’s Stockholm exchange on the dip. As a result,  Dimon was accused  of market manipulation violating European market abuse laws causing a  flash crash according to a complaint filed to the Swedish financial  regulator. 

JP Morgan doesn’t just purchase Bitcoin ETFs, the company is also  heavily involved with the ‘blockchain fever’ that has infected banks  across the world. The financial firm has applied for a “Bitcoin  alternative” patent with the U.S. over 175 times in 2013 being rejected every time. JP Morgan is also working on an ethereum-based blockchain alongside, according to people familiar with the matter, working with Zcash development as well. 

Earlier this year, Dimon admitted  that he was wrong and regretted calling Bitcoin and cryptocurrency a  fraud in general. As JP Morgan’s annual report details, Dimon is just  scared that cryptocurrency will surpass his bank, with good reason since  the whole cryptocurrency market cap has surpassed JP Morgan’s own evaluation. The entire market cap of cryptocurrencies has even surpassed that of Apple’s own market cap. 

Bitcoin is currently trading at [FIAT: $11,515.00] according to Coin Market Cap at the time of this report. 

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