JPMorgan Chase released its annual report on Tuesday, and for the first time identified digital currency innovation as a potential risk to the bank’s business services. The report suggested that the firm has been working to adapt its service offerings to keep pace with increased competition from tech companies utilizing the new technology.
As Fortune reports, the bank has concluded that:
“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.
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’s acknowledgment of crypto’s disruptive potential is another indication that the banking sector is becoming increasingly aware of the technology’s transformative nature. In fact, Bank of America expressed a similar view about cryptocurrency competition in its own annual report last week.