With a different voice now, JPMorgan Chase has admitted that cryptocurrency is currently a ‘risk’ to its business for the first time.
It can be recalled that JPMorgan Chase CEO Jamie Dimon has called Bitcoin a “fraud,” despite these the big bank is now taking cryptocurrency very seriously—acknowledging the blockchain-based technology as a veritable threat to its future.
Via JPMorgan Chase’s annual report, released Tuesday afternoon, the bank counted cryptocurrencies such as Bitcoin and Ethereum as “risk factors” to its business for the first time, recognizing the digital currencies as new forms of competition that could, quite literally, 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,” the bank (jpm, -1.18%) wrote in the report.
Already, the bank added, new technologies have required the company to invest in adapting or modifying its products to draw and retain customers, and to compete with new offerings from tech upstarts, a trend it expects to continue.
“Ongoing or increased competition may put downward pressure on prices and fees for JPMorgan Chase’s products and services or may cause JPMorgan Chase to lose market share,” according to the report.
The bank’s disclosure to the public with their report follows a similar admission by rival Bank of America (bac, -0.28%) in its own annual report last week.
In that filing, Bank of America noted the potential risk of customers leaving for competitors offering products and services “in areas we deem speculative or risky, such as cryptocurrencies.”
Meanwhile, a spokesperson for JPMorgan Chase has declined to comment on why the company chose to add cryptocurrency to its risk factors now.
As of posting, JPMorgan has shown an increasing appreciation for the transformative potential of both blockchain technology—becoming one of the first to spearhead the development of its own Ethereum-based blockchain—and the cryptocurrencies based on it.