The largest bank in the US has admitted cryptocurrencies and the blockchain technology could disrupt both the traditional markets.
The Bank recently banned credit card-crypto transactions, citing Compliance with Anti-money laundering laws, Consumer protection and tackling crypto related credit card frauds. The ban only affected credit card holders, as it wasn’t applicable to debit cardholders.
JPMorgan Chase Annual 10-K filing
The cryptocurrency admission was made in its annual 10-K filing with the U.S. Securities and Exchange Commission on 27th February 2018. JPMorgan Chase currently manages approximately $2.53 trillion in assets which positions it as the largest investment bank in the United States. The report clarifies the firm’s opinion on cryptocurrencies and Distributed Ledger technology DTLs impact of financial institutions and other institutions.
The report reads:
“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 statement relates to similar reports made by Bank of America and Goldman Sachs in their SEC filings, including cryptocurrencies for the first time on the risk list. The reasons for inclusion vary, but the shared opinion was a need of investing and innovating and adapt to the crypto industry.
Jamie Comments plus Regrets
According to the last year CCN report during a banking conference JPMorgan CEO Jamie Dimon, a bitcoin and crypto critic labeled cryptocurrencies as a “fraud”, and would instantly fire any employee found trading digital related assets.
Recently in a FOX Business interview, he made a U-turn on his words and dismissive comments towards cryptocurrencies saying “I regret making them.” He further distinguished cryptocurrencies from the Blockchain Technology stating that the blockchain is real.
Massive Cryptocurrency Adoption
The global bitcoin market has been expanding as the bitcoin dominance index rose to 40%. The Wednesday dominance rise is the highest since December last year as the cryptocurrencies continue to receive a hit against the dollar. The bitcoin maintained a resistance at around $10,500 as other top 10 cryptocurrencies declined in value.
Banks will eventually have to be innovative and invest more to reap the benefits of the blockchain and cryptocurrencies if they hope to avoid problems faced by postal offices during the introduction of emails.