Bitcoin, the world’s flagship blockchain-based digital money have come under constant criticisms by many in the corporate world, with some calling it a ‘fraud’ invested in by ‘stupid’ people. However, the king of cryptocurrencies has stood its grounds over the years and now, large banks like JPMorgan whose CEO is bitcoin’s number one critic, has acknowledged the revolutionary power of virtual currencies.
A Threat to Our Survival
JPMorgan CEO, Jamie Dimon has never liked bitcoin or the altcoins and has always seized every opportunity to badmouth cryptocurrencies. But all that is changing now as one of the largest banks in the world have started recognizing the potentials of blockchain monies, acknowledging they are a massive threat to the future survival of banks.
An excerpt from the report reads:
“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.”
It might interest you to know that JP Morgan’s Securities Ltd has been trading bitcoin through custodian accounts in Sweden since September 2017.
Not wanting to lose its customer base and market share to competitors like MAN Group and other institutional investors, the bank announced in December that it was considering trading bitcoin via CME’s gateway.
“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,” the report stated.
JPMorgan Chase is not the only bank feeling threatened by the crypto revolution. On February 27, BTCManager informed you that the second-largest bank in the U.S, Bank of America (BOA) has also declared digital currencies as threats to their business. In its 10-K annual report submitted to the United States Securities and Exchange Commission, BOA said that:
“Emerging technologies, such as cryptocurrencies, could limit our ability to track the movement of funds,” the report stated, adding that “substantial expenditures” are required to help the bank align its products and services to fit into the new market construct.
While both heavyweights in the banking sector are yet to integrate cryptocurrency into their operations, they have however embraced blockchain technology which is the fuel of bitcoin and other virtual currencies. According to reports, the Bank of America has at least 70 Blockchain patents and other blockchain-based wallet and transaction authentication services.
JPMorgan Chase has also created its Ethereum smart contracts blockchain the bank’s head of Blockchain initiatives, Umar Farook, who was present at the Yahoo Finance All Market Summit held on February 7 stated that:
“It’s more than thriving. People have been surprised how quickly it basically spread as a way to address and think about customers differently. It’s quite insane.”
It’s worth noting that on February 11, 2018, JPMorgan Chase analysts published a detailed report on bitcoin and other cryptocurrencies, which is now nicknamed “bitcoin bible” due to its lengthy and insightful nature.
Even with the recent bearish trend, cryptocurrency investors appear unshaken and quite optimistic that the bad times will not last. Currently, financial institutions for the first time are beginning to acknowledge the fact that digital currencies could take over the world soon.
The battle line is drawn, will these banks and finance big whales finally give in to the crypto revolution or will the blockchain currency market entirely collapse in future? Only time will tell.