The CIO of JP Morgan, Lori Beer, while expressing her optimism about blockchain technology, reportedly stated in a press conference hosted in Buenos Aires that the blockchain technology will consequently “replace existing technology” in a couple of years, this was reported on 23rd August by a local Argentinian media outlet, Crypto247. Beer stated that;
“We will see a greater and wider use of blockchain […] In a few years blockchain will replace the existing technology, today it only coexists with the current one.”
JP Morgan Adopting BlockChain Technology
Lori Beer explained that JP Morgan has been tilting towards the blockchain technology side make payment process and storage of customer information easy and less cumbersome which is related to the KYC (Know Your Customer) policy. She explained further by stating that blockchain technology is also an effective weaponry to combat money laundering, she gave a rather comprehensive explanation as to why the reputable bank has been a blockchain technology advocate, saying:
“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.”
When Lori Beer was asked about the position of JP Morgan on acquiring virtual currency asset, the CIO answered in the negative stating that the bank maintains a reputation in support of enterprise which is largely regulated and has some form of specialist who performs the oversight function which sadly the Crypto world lacks. Also, the CIO evaded a question which inquires about the institution’s stands regarding Initial Coin offering ICO when asked.
It was earlier reported in August that the CEO of JP Morgan, Jamie Dimon, expressed his optimism about blockchain technology stating that the company “[JPMorgan] is testing [blockchain] and will use it for a whole lot of things.”
In July, it was reported that the Vice President of the US based investment bank, Pang Huadong, during an interview with China Economic Times, stated that “blockchain is the key to avoiding the next global financial crisis.” Huadong was quoted saying:
“It is only gradually understood that blockchain technology may be the key to avoiding the next world-class financial crisis.”
In May, JP Morgan Chase filed a patent with the United State Patent and Trademark Office for a blockchain powered peer-to-peer payments network which could be used for both within and outside company transactions. The patent application proposes using a distributed ledger system to process payment in real time. It would also eliminate the third party need to keep the authenticated copy of the audit track.