JPMorgan Chase Officially Admits Bitcoin Can Destroy Banks

JPMorgan Chase Officially Admits Bitcoin Can Destroy Banks

It’s official. JPMorgan Chase, the largest US lender, has admitted that cyber money as well as peer-to-peer tech trend, could destroy traditional financial institutions.

Some days earlier, the Bank of America acknowledged that it might not be able to adjust to new realities in case bitcoin becomes more and more popular. So, as we can see, what various experts predicted some even years ago, might be true.

JPMorgan Frightened by Bitcoin?

In an annual report, released on February 27, JPMorgan Chase made a revolutionary statement. In the file, aimed at the US Securities and Exchange Commission (SEC), the bank named digital coins and DLT (blockchain in particular) as phenomena that have all the chances to disrupt the life of banks.

The list of “dormant” bank destroyers can put lots of banking services in danger, according to the report. For example, the processing of payments is the first to be jeopardized by crypto assets.

Therefore, as it is written further, financial establishments and other non-banking rivals, including JPMorgan itself, will have to plan their budgets in a way that they will have funds to work on their products and services and to be able to withstand the popularity of cryptos.

This probably means that banks might start to develop services which can compete with options that virtual money offers and gain the attention of their clients back.

Jamie Approves

It is noteworthy that the 301-gape document has been signed by JPMorgan executive Jamie Dimon, who has been known for criticizing bitcoin. Last year September he even called this technology a “fraud.” He even threatened his colleagues, prohibiting them to trade cryptos at work. However, later he accepted being wrong and said that the “blockchain is real.”

By the way, as per recent assessments, JPMorgan currently manages $2.53 trillion in assets.