JP Morgan CIO: Blockchain Will “Replace Existing Technology”
“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,” Beer said during a press conference in Buenos Aires.
Beer went on to explain that JP Morgan currently uses blockchain to “simplify the payment process and to store customers’ information related to KYC policy.” She added that the technology helps prevent money laundering.
Beer further explained the use of distributed ledger technology (DLT) at the firm, stating:
“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 asked about JP Morgan’s stance on buying cryptocurrencies, Beer explained that the firm is “evaluating what is happening” with virtual currencies. Beer preferred not to answer when asked about initial coin offerings (ICOs).
JP Morgan has remained noticeably optimistic on the future potential of blockchain technologies. As reported by The Block Tribune in May, JP Morgan recently filed a patent for blockchain-powered payments between banks.