In its annual report, filed with the Commission on securities and exchange Commission (SEC), the Bank J. P. Morgan Chase put the cryptocurrency in the section “risk factors”.
It should be noted that the technology of the blockchain has not been directly named in the text of the document, but the section “competition”, contains this paragraph:
“Technical progress and the growth of electronic Commerce has enabled institutions that are not Depository institutions, and to offer products and services that were traditionally banking. These changes also allow financial institutions and other companies to provide electronic and online financial decisions. […] In addition, as financial institutions and their non-Bank competitors face the risk that payment processing and other services may be disrupted by technologies such as cryptocurrencies, which do not require mediation”.
The report also says that these “competitors” may require JPMorgan Chase “large expenditures to modify or adapt their products to attract and retain clients and customers, or to match products and services to those offered by competitors, including technological company.”
The Bank adds that because of the competition JPMorgan Chase may have to lower their prices on products and the Commission rate, or even lose market share.
Recall that last week Bank of America released its annual report to the SEC, which also talked about the threats associated with cryptocurrencies:
“The widespread adoption of new technologies, including web services, crypto-currencies and payment systems, may require significant expenditures to modify or adapt existing products and services.” — the report says the Bank.