Link
https://www.reuters.com/article/us-jpmorgan-blockchain/jpmorgan-launches-payments-network-using-blockchain-technology-idUSKBN1CL1P6
With the recent news of JP Morgan's new Interbank Information Network, supported by Quorum, JP Morgan Chase becomes the first US bank to integrate the use of blockchain technology in payment methods. Under a time of high scrutiny from bank executives, including JP Morgan's own CEO, Jamie Dimon, JP Morgan has started the forefront of a new world of the way think of electronic payments.
The blockchain is a technology developed by Satoshi Nakamoto, the creator of Bitcoin. Blockchain involves a payment method that relies on proof-of-transaction that is satisfied within the blockchain. Each payment must be verified under each block, creating a public, and open thread in which all transactions may be seen and traced. This new technology has been heralded by some to be the greatest innovation since the airplane. Many foreign banks have already hopped on the blockchain train, including the Royal Bank of Canada and the Australia and New Zealand Banking Group.
With the lead of JP Morgan, hopefully many more US banks will join in on this new, innovative way or peer-to-peer electronic payments. In a time of leading innovation across the board, banks are one area that have seen a lack of innovation in recent years. For those who think our financial systems must be updated, this is a great step forward.
This is definitely a positive step for the use of crypto-currency in the United States. JP Morgan is a huge player in the banking and financial services industry and this should influence other large players to participate. If other large financial institutions follow suite it should have a significant impact on the economy and the way trades are made. This will also impact the liquidity and demand for paper currency.
ReplyDeleteIt's interesting to read in the new this week that India's central bank has big concerns that these blockchain currencies like Bitcoins can present financial, legal, and consumer protection risks. Yet some Indian companies reportedly are providing financial services using blockchain technologies--See https://economictimes.indiatimes.com/news/company/corporate-trends/indian-companies-using-blockchain-technology-to-better-services/articleshow/61509547.cms
ReplyDeleteIts interesting to see JPMorgan flip their stance on cyrpto-currencies. Originally they said it was a dumb idea and that anyone who is involved with crypto-currencies was wrong. The world has consistently been moving to be more technologically savvy and its crazy that even something as stable as money can be digitized. Pretty soon everything will be done through a computer and face to face interactions wont carry the same meaning.
ReplyDelete