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A year and a half after it was first announced, JPM Coin, JPMorgan Chase’s internal stablecoin, is now up and running 24 hours a day by a major transnational technology company for cross-border payments.
According to an Oct. 27 report, this real proof that technology is increasing efficiency and reducing costs it strengthened the bank’s confidence in the promise and profitability of the technology. With the expectation that more corporate customers will sign up to use the stablecoin, JPMorgan has created a business dedicated to digital currency and work on the blockchain.
The new business unit, called “Onyx“, has more than 100 employees and is managed by Umar Farooq as CEO. Takis Georgakopoulos, JPMorgan’s Global Head of Wholesale Payments, told reporters:
“We are entering a period of commercialization […] moving from research and development to something that can become a real business “.
In the aftermath of PayPal’s recent adoption of cryptocurrencies, Owners’ confidence that blockchain can actually make them money appears to be on the rise. JPMorgan’s experimentation and development with the technology so far can be divided into several key areas.
First, the bank has been piloting a blockchain-based interbank information network since 2017, in which more than 400 participating banks and companies participate. JPMorgan believes the network, now renamed Link, can generate significant efficiency savings for the complex interactions of correspondent banks in cross-border wholesale payments. JPMorgan itself represents cross-border wholesale payment flows of over $ 6 trillion per day, in more than 100 different countries.
The bank also identified the usefulness of blockchain to innovate the existing obsolete system for processing “hundreds and millions” of paper checks.. Blockchain and digitization can, in a secure way, completely ban the physical aspects of this exchange. Georgakopoulos said a new blockchain system is months away from commercial launch:
“By using a version of blockchain where participants are major check issuers and major safes operators, we may be able to save 75% of the total cost to the industry today and make more checks available in minutes instead of in days. “
For last JPMorgan is confident in blockchain for creating new payment avenues for global central banks and their evolving central bank digital currencies. Pointing to China and Singapore, Georgakopoulos expressed confidence that the probability of adopting the CBDC is “very high”.
The new CEO of Onyx has expressed his thoughts on why developments have seemed “slow”, or at least misleading, on the blockchain front at JPMorgan so far:
“If you think about blockchain, we are somewhere at the lowest point of disillusionment or a little further on the advertising curve. That’s why we at JPMorgan have been relatively quiet until we were ready to scale it up and commercialize it.”
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