JPMorgan, one of the oldest financial companies in the world, is now building its own blockchain. The Argentinian website Cripto247 reported the bank’s statement regarding the distributed ledger technology during the press conference in Buenos Aires, Argentina on August 23.
In contrast to what CEO Jamie Dimon said a year ago which she later on rolled back, CIO Lori Beer said in the recent press conference that blockchain would replace existing technology in the coming years. It is still coexisting now, but in a few years it will replace the existing technology, and we will all see greater and wider use of blockchain.
Beer added that aside from using the blockchain technology to store customers’ information relating to the Know Your Customer policy and simplifying the payment process, the technology also strengthens the Anti-Money Laundering rules when sending money between banks. The bank is currently using blockchain for these things.
JP Morgan is also working on an open code based on Ethereum and is connected to Enterprise Ethereum Alliance and Hyperledger. Blockchain’s issue with scalability and privacy hasn’t been resolved yet, but the organization is being optimistic. Beer further commented that it’s not the technology itself but the application of the technology in business. They are looking for opportunities to develop products and not just to reduce the cost.
If we talk about the distributed ledger, talking about cryptocurrency is inevitable. When the subject was mentioned in the conference, the JP Morgan CIO had somehow seen it coming. As a response, Beer clarified that the bank is supporting what is 100% regulated and specialist is still evaluating what is happening as far as cryptocurrencies are concerned. A no comment response met the added question about Initial Coin Offerings (ICOs).
Earlier in May, a patent was filed for a blockchain powered peer-to-peer payments network. Last August, it was reported that JP Morgan Chase’s CEO Jamie Dimon optimistically stated that the company is testing the technology and will be using it for a lot of things.