Lori Beer, the CIO of JP Morgan, has stated that blockchain technology will replace the current transactional technology in the next few years. According to Beer, “The technology is still growing and very soon we will see a wider and greater use of blockchain technology. Very soon the technology will also replace the current technology.”
Beer also elaborated that JP Morgan is already pursuing blockchain technology to simplify payment processes. She added that the bank has implemented the Know-Your-Customer (KYC) policy using blockchain. Beer says, “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.”
Regarding the current state of digital currencies, Beer said that the bank will support any well-regulated technology. She added that the bank has specialists who are evaluating what is going on in the cryptocurrency markets. She, however, refused to comment about the bank’s position on Initial Coin Offerings (ICOs).
In August, Jamie Dimon, the CEO of JP Morgan, said that he was very optimistic about blockchain technology. According to Dimon, “[JPMorgan] is testing [blockchain] and will use it for a whole lot of things.”
Application in All Sectors
Blockchain technology is shaping the financial sector in different ways. The most important feature is its security. Information is extremely secure with blockchain technology. Tampering with it is nearly impossible as one must receive access by all involved parties. With blockchain technology expected to be the future of the digital world, no institution wants to be left behind. Banks and other financial institutions have set aside huge budgets to invest in the revolutionary technology.
This technology brings transparency in many sectors, as well as reducing operational costs. One giant company that is already using blockchain is Samsung. Samsung uses it to control its supply chain department. Within the first month after implementation, the tech giant saved 20% on supply costs. The blockchain is also the driver of many digital currencies like Bitcoin (BTC), Ethereum (ETH), and hundreds of others, otherwise known as altcoins.
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