Digital currencies and fintech projects should have a clear legal status, as they potentially threaten the traditional banking sector, said Jamie Dimon, CEO of JPMorgan Chase, in a letter to shareholders.
$JPM Chairman and CEO, Jamie Dimon, releases his Annual Letter to Shareholders.
— J.P. Morgan (@jpmorgan) April 7, 2021
Among the main risks, the head of the financial group cited the growth of shadow banking, improper use of financial data, and cybersecurity threats.
«JPMorgan is aggressively adapting to the new challenges posed by rising competition from digital platforms, and advocates for a level playing field», — he wrote.
Jamie Dimon stressed that the difficulty of current cryptocurrency market regulation in the United States lies in the divergent views among government authorities on the industry.
According to JPMorgan, there are currently around 58 fintech companies with a market capitalisation above $1 billion competing for clients, offering faster and more efficient payment services.
Dimon added that if banks do not strengthen their positions, they risk «going back into the past».
Earlier, Goldman Sachs’ investment arm CEO David Solomon stated that current regulation of the cryptocurrency industry limits banks’ ability to work with digital assets, but over time this will change.
Subscribe to ForkLog news on Telegram: ForkLog Feed — the full news feed, ForkLog — the most important news, infographics and opinions.