In the JP Morgan annual report released this afternoon on Tuesday, the bank saw Bitcoin and Ethereum as the 'risk factors' for the first time, arguing that digital currency is a new form of competition and it is no exaggeration to say that, They caused the bank to lose money.
The report said: 'Financial institutions and their non-bank competitors are at risk because technologies such as cryptocurrencies do not require intermediate links and can disrupt payment processing and other services.'
JPMorgan Chase added that the new technology requires companies to invest more and adjust or improve their products in order to attract and retain customers and compete with new technology companies for new products, a situation that is expected to continue: the report said: Continued or increasing competition may put downward pressure on the prices and costs of JPMorgan products and services, which may cause JPMorgan to lose market share.
Earlier last week, JP Morgan's rival Bank of America also made a similar statement in its annual report, while Bank of America pointed out that in "speculative or high-risk areas we identify, such as cryptocurrencies," there is a flow of customers to competitors offering products and Service 'possibilities.
A JP Morgan spokesman declined to comment that the company now chooses to list cryptocurrencies as a risk factor, but the bank has shown strong interest in the blockchain technology and the resulting technology change potential for cryptocurrencies. Earlier in the month, led by Umar Farooq, JPMorgan Chase introduced blockchain technology internally.
'It's not only changing rapidly, but surprisingly, he can quickly spread and change the way customers think,' Farouk said on the Yahoo! Financial Markets Summit in New York on February 7. 'It's crazy.'
In the coming week, JPMorgan released a 71-page research report that the outside world calls the "bitcoin Bible," an extensive and in-depth analysis and exploration of the leading currencies of cryptocurrencies, as well as other products such as Swisscoin. Analysts at the bank have evaluated the current blockchain and cryptocurrency investment businesses and believe that 'banks can capitalize on the opportunities offered by blockchain technology to do business, which will have profound implications for the industry as a whole.'