JP Morgan CIO says that blockchain will replace existing technology
There has been some promoting doom and gloom in the Crypto markets lately. However, while markets may be bearish, it is crucial to understand that the technology is the most vital aspect of Cryptocurrency. Fluctuations in a heavily manipulated market are far less critical in relative terms. The JP Morgan CIO recently had some exciting things to say about Blockchain technology. We explain what she said and why her words are so significant.
Viability of Blockchain
Lori Beer is an expert on FinTech and a highly valuable asset to the powerful banking corporation JP Morgan. She was recently attending a blockchain event in Buenos Aires. She provided updates on how JP Morgan plans to utilise Blockchain technology in their future operations. One of her most pertinent quotes was, “We will see greater and wider use of blockchain. In a few years blockchain will replace the existing technology, today it only coexists with the current one,”. This quote is significant because it shows that she sees blockchain as being a pivotal technology in the future. It bodes well for Cryptocurrency in general when the FinTech expert who is the CIO of one of the most influential banking institutions on the planet makes such an assertion. This is a woman who is an expert in her field and doesn’t make claims without significant knowledge to back it up.
Use of Technology
She also expanded on how the banking giant currently uses the technology and the challenges they face in the future. She said that the bank uses blockchain technology to “simplify the payment process and to store customers’ information related to KYC (Know Your Customer) policy”. KYC is one of the essential function of any bank or similar organisation. It is intended to protect the customer’s privacy and also give a bank added security. The fact that blockchain technology is being used to guide this process is a positive sign. KYC is one of the best tools for fighting money laundering, and it is evident that blockchain technology could be a significant solution for tackling this issue.
Future Use of Blockchain
As to how the bank intends to utilise the technology in the future, Beer had this to say, ” We are currently following many paths. We invented a blockchain with an open code based on Ethereum. Actual blockchain technology has not yet resolved issues with privacy and scalability that we needed. We are connected to Hyperledger and Enterprise Ethereum Alliance. The application of this technology in business is more important to us than the technology itself. We are looking not only for cost reduction but also for opportunities to develop new products.” This passage reveals the eagerness of the bank to use this technology to solve problems. However, it also shows the current limitations on the technology which are also relevant in the Crypto space. These include privacy and scalability. The mere fact that they are invested so many resources in applying this technology to financial operations shows how much faith they have in it. On the topic of Cryptocurrency, the CIO was more tight-lipped. She explained that JP Morgan wants to see more regulation in that field. But interestingly revealed that they have “specialists” monitoring the release of ICOs.
The blockchain is nothing new for JP Morgan. In August, their CEO revealed that they were testing Blockchain technology for a range of things. In May they even filed a patent for a peer-to-peer payments network that was powered by Blockchain. Beer’s recent comments have shed some fascinating light on just how the bank intends to use Blockchain. Understandably, however, she did not give too much away.