JP Morgan is Bullish on Blockchain, Not Bitcoin, for Improving Banks and Payment Systems
Financial giant JP Morgan has not been silent when it comes to cryptocurrency. Recently, the institution released a report that asserted Bitcoin could dip all the way down to $1260 before it starts moving upward in price.
Even though JP Morgan has expressed doubts about the long-term viability of cryptocurrencies, some in the company seems to be more bullish on the blockchain.
In a recent Bloomberg interview, global research chair Joyce Chang asserted how blockchain’s most meaningful impact will “probably be three to five years away and mostly on trade finance.”
Chang, who noted “blockchain isn’t going to reinvent the global payment system,” led a group of JP Morgan analysts and strategists who published a recent report that touched on trade-finance blockchain solutions.
In the interview, Chang backed up her optimism about blockchain’s usage by referring to the Interbank Information Network that is based on Ethereum’s blockchain. The network is targeted to tackle issues related to information sharing and is an attempt to speed up payments to beneficiaries.
Banco Santander’s usage of blockchain was highlighted in the report whose team Chang spearheaded. It also indicated BBVA was the first in the world to utilize blockchain in the process of issuing a $86 million corporate loan.
Both of these banks were rumored to have been some of the first to be invited to the European Union’s International Association for Trusted Blockchain Applications. BBVA and Banco Santander have since joined the Association.
She said it was important to make a clear distinction from blockchain and cryptocurrency, as it has been very difficult to “get through the regulatory issues” pertaining to crypto.
Chang also noted how crypto has not been adopted by many major retailers and continues to see falling trading volumes.
But when it comes to the blockchain, she seemed a lot more optimistic, partially because “there are successful use cases” for the technology.