JPMorgan Calls Blockchain A "Slight Improvement" For Banks
Experts from the JPMorgan bank holding believe that blockchain technology is most useful in finance and trade, Bloomberg reports.
The company’s head of research Joyce Chang claimed, that although distributed ledger technology (DLT) will not recreate the international payment system, it will still bring some improvements. According to her, the strongest effect from blockchain can be expected in three to five years and, most likely, the technology will be actively used in commercial and financial activities.
Chang also provided a report stating that blockchain and digitalization could potentially bring many benefits to banks and financial institutions. She added that while cryptocurrency attracts the most attention, the underlying technology is actually of greater importance.
JPMorgan already has its own banking blockchain network called Interbank Information Network (IIN), joined by 157 international players from the financial sector. The network, built on Ethereum, is designed for data sharing between banks and speeding up payments.
Despite the growing popularity of DLT technologies in financial services, Chang believes that banks may face the problems of scalability, regulation, and cost-effectiveness.
Meanwhile, another bank holding, HSBC, said that it made more than three million blockchain transactions totaling $250 billion during 2018. According to the company, one of the main advantages of blockchain operations is that it does not require an external confirmation.
Previously, India developed a plan to implement blockchain into the country’s banks.