Related Articles
Advert
Get Trading Recommendations and Read Analysis on Hacked.com for just $39 per month.
It may knock someone for six some people to learn that JPMorgan Chase is invested in the blockchain. Umar Farooq, a banker inform oned blockchain leader at JPMorgan, discussed how the bank is using the blockchain and didn’t shy away from bitcoin. He was speaking at the Yahoo Pay for All Markets Summit for Crypto in New York earlier this week.
He symbolize of “active engagement” with blockchain internally, as teams from across the bank’s employees are increasingly looking to distributed ledger technology as a possible solution to problems. Farooq’s at the senior of that business, and he’s more open-minded about bitcoin than you mightiness think.
He said that while the industry may say blockchain’s good and bitcoin’s bad, that’s now how JPMorgan, the top US bank based on assets, mull overs the world. “We all believe in blockchain good. I wouldn’t go as far to say cryptocurrencies bad. I would say and cryptocurrencies procure issues.”
The big issue, he says, surrounds know-your-customer (KYC) and anti-money laundering (AML) controls.
“Everyone I talk to in the banking industry, regulators, central banks — Harry sees the potential. But everyone is trying to fundamentally grapple with the originates. I wouldn’t say crypto is bad, but I think crypto needs some evolution,” he express.
Elephant in the Room
Meanwhile, he wasn’t afraid to tackle the elephant in the stay, his boss Jamie Dimon’s previous derogatory remarks on bitcoin, contribution some perspective.
“I think he’s backed off, clarified a couple of comments. He’s continually been super consistent in breaking the two apart cryptocurrencies versus blockchain. In terms of cryptocurrencies, presupposed right now the banking industry is facing these questions, I think his remark ons were quite relevant to the times. If you talk to many regulators, they at all have similar feelings,” said Farooq.
But he wouldn’t go so far as to say that JPMorgan has aims to roll out a bitcoin product to retail investors in the near future, pronouncing: “At this point, everyone is studying the stuff.” Once policies are enlarge oned reflecting KYC and AML standards, “then the retail bank will take a strict look at how to do this,” he added.
Radical Impact
Meanwhile, JPMorgan has been reconnoitre blockchain technology for the past two years when the market was still “nascent,” acquiring developed Quorum, based on Ethereum, which was open-sourced and brought Jamie Morgan to GitHub. He doesn’t prospect the technology as a threat for now.
Farooq expects blockchain will have a “anarchistic impact” on some of the bank’s businesses, particularly as it relates to providing consign between parties. “There’s always a role for a trusted advisor in the mix,” he said, adding the bank could present infrastructure or facilitate the data layer. “There will always be a responsibility. It’s not an existential threat in the short-term.”
Blockchain has gripped JPMorgan, as evidenced by a blockchain accepted room for messaging that’s ballooned to more than 1,500 people. He indicated his team started small and now every line of business at the firm has blockchain portrait. They approach the blockchain group saying a problem “smells or tolerates” like it could use the blockchain for data transfer, reconciliation, etc. Today the blockchain assemble is engaged with multiple businesses across payments, capital stores and custody.
“Our fundamental approach to blockchain is we think about the customer unsettled we want to solve … 80% of the time, blockchain isn’t the answer and it ends up being an infrastructure dissemination. But we focus on the 20% of the time where blockchain really is a good result. We have a number of solutions on the way,” he said.
Featured image from Shutterstock.
Support us on Telegram.
Advertisement