Ripple News Update
Although critics of Ripple insist that banks have no intention of adopting XRP, Wall Street’s resistance to blockchain is weakening.
For example, JPMorgan Chase & Co. (NYSE:JPM) recently identified cryptocurrencies as a potential threat to their payments business. Below is an excerpt from their annual statement. (Source: “JPM Form 10-K Filing,” Securities & Exchange Commission, February 27, 2018.)
“Furthermore, 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. New technologies have required and could require JPMorgan Chase to spend more to modify or adapt its products to attract and retain clients and customers or to match products and services offered by its competitors, including technology companies.”
This news captured a lot of attention.
Why? Well, one reason is that JPMorgan CEO Jamie Dimon is a vocal critic of cryptocurrencies. It was only a few months ago that he called Bitcoin a “fraud,” adding that he would fire any employees caught trading virtual currencies.
Now Dimon’s bank perceives cryptocurrencies as an existential threat? What happened between November and February to inspire this turn of events?
Maybe Dimon played down his concerns publicly for fear of shaking investor faith in JPM stock. It’s possible. In fact, I would buy that argument if it weren’t for the fact that Bank of America Corp (NYSE:BAC) and Goldman Sachs Group Inc (NYSE:GS) also listed cryptocurrencies as a business risk.
One bank is a data point. Three is a trend.
So what’s going on? I personally believe that Jamie Dimon and his Wall Street cronies are hedging their bets. If we’re right and cryptocurrencies eat their lunch, Dimon can turn around and say to investors: “We warned you this might happen!”
Ripple (XRP) Price Chart
On the other hand, they don’t appreciate the magnitude of change that’s on their doorstep. If they did, perhaps we’d see more frantic change. But Wall Street isn’t designed to uproot its own existence—that’s not in its DNA.
This acknowledgment in their 10-K filings is a compromise. And that’s what we’ll continue to see: compromise after compromise till they’re forced to accept some back-office blockchain software.
I think Ripple will end up supplying that back-office software.
Despite protestations to the contrary, Ripple is one of the most palatable options available to Wall Street, because it would not threaten their entire business. This strongly incentivizes XRP adoption, which is one reason we maintain our $10.00 Ripple price prediction for 2018.