The experts at the financial services company JPMorgan are in the latest crypto news, showing that blockchain technology can provide a magnitude of benefits to banks and payment systems. According to reports by Bloomberg, the benefits are visible on every level in the company.
As the chief of global research at JPMorgan named Joyce Chang noted:
“Blockchain isn’t going to reinvent the global payment system, but it will provide marginal improvements. The most meaningful impact will probably be three to five years away and mostly on trade finance.”
A new report led by Chang states that blockchain applications in trade-finance are now more common because of the high potential gains from efficiency through digitization. She also noted that while cryptocurrencies have attracted the most attention, blockchain is the underlying technology which is more important in this case.
The chief also touched the topic of the Interbank Information Network (IIN) which consists of 157 banks internationally and how blockchain could improve it. Developed by JPMorgan on its Quorum platform, IIN is based on the Ethereum blockchain and aims to tackle multiple challenges of sharing information between banks as well as expediting the transactions to recipients.
Still, while blockchain is getting more and more popular even for banks and IT giants, Chang noted that the technology has four main challenges: scalability, integration, cost-efficiency and regulation.
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