As recently reported by Bloomberg, global banking giant J.P. Morgan has recently made an array of comments on the future of blockchain technology and similar innovations.
Soon To Make An Impact
In a recent interview, Joyce Chang, J.P. Morgan’s chair of global research, stated that blockchain technology is three to five years away from displaying a meaningful impact. The Wall Street researcher also suggested that the inceptive technology will likely revolve around trade finance, rather than all industries as some of blockchain’s crusaders expect.
Chang also affirmed that blockchain in and of itself will not remodel the current state of global finance. In a somewhat harrowing comment, she stated:
“Blockchain isn’t going to reinvent the global payments system, but it will provide marginal improvements.”
In a recent report, conducted by analysts at the New York-headquartered financial powerhouse, it was explained that the reason why ledger solutions will be more prevalent around trade finance is that the digitization of the sector will greatly enhance efficiency.
She went on to exclaim that: “We need to separate out blockchain from crypto.” Backing her somewhat inflammatory quip, Chang remarked:
“There’s been progress made on blockchain [technology], there are successful use cases.”
Banking And The Blockchain
Chang also spoke on the Ethereum-based initiative devised by J.P. Morgan and Quorum, INN (Interbank Information Network), which aims to solve problems relating to interbank information sharing, while also bolstering transactions speeds overall. The newly-formed network is already supporting 157 banks worldwide.
Current use-cases for blockchain that were cited by Chang, include innovations made by Spanish banking giant, Banco Santander. The Spanish company’s chair of global research was quoted saying how the Mediterranean bank has “pioneered” the integration of blockchain. The bank has implemented the technology into the traditional banking industry, allowing them to process the issuance of a €75 million ($86 million) corporate loan. The ledger-centric transaction was a first-of-its-kind.
Distributed ledger technology has been making waves throughout the banking industry, with many entities taking up to the opportunity to use the nascent technology to improve their underlying operations.
As recently reported by Live Coin Watch, HSBC has revealed that it has processed over $250 billion in transactions using a decentralized ledger. HSBC’s head of Foreign-Exchange and Commodities, Richard Bibbey, stated that on the back of the successful implementation, the bank is now examining how they can utilize their blockchain-esque tech to help their clientele “better manage foreign exchange flows within their organizations.”
Blockchain > Cryptocurrencies
The current desperate circumstances displayed by the cryptocurrency markets has not correlated with the development and progression made within this nascent sector.
As cited in a recent report, Switzerland’s hub for cryptocurrency and blockchain innovation has witnessed a 20% increase in crypto-friendly startups within the last 3 months. Better known as the “Crypto Valley,” Zug, the Swiss mecca for crypto-fanatics also recently topped the polls in a report conducted by technology investment firm Atomico. The firm found that the number of attendees at tech-related meetups in the city of Zug has skyrocketed 177% year-on-year, only accentuating that the local blockchain ecosystem is swelling beyond compare.
I personally believe that the continued application of blockchain technology around the globe will have a profound impact in the years to come. In a world that is becoming increasingly uncertain, a technology which embodies both trust and the ability to improve efficiency will be readily adopted by individuals, corporations, and governments alike.
As reported late last year, several European member states had signed a declaration calling for the implementation of blockchain technology. Seven Mediterranean states, including giants France, Spain, and Malta, all signed the bill with hopes to utilize distributed ledger technology to improve efficiency with multiple sectors, including land registry, customs, company registry, and healthcare.
Title Image Courtesy of Markus Spiske on Unsplash