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JP Morgan analyst believes blockchain beneficial for banking sector

source-logo  chepicap.com 08 February 2019 14:50, UTC

JP Morgan Securities global research chair, Joyce Chang was recently interview by Bloomberg on her opinions related to blockchain technology. 

Speaking to Chang at the Bloomberg offices, Chang admitted that trade finance has the best chance of progress which could be expected within the next three to five years.

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Chang explained that JPM's interbank information network has partnered with 157 banks to participate and experiment in blockchain technology, stating "there has been greater extension of these use cases, although I would say it's still far from institutionalization."

Speaking about some of the issues surrounding the use of blockchain, Chang mentions several issues including data privacy, regulatory and security issues that would need to be resolved in order to transform the way banks currently settle trades.

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Chang mentions that supply chain and transportation use cases are harder to scale, saying "its very difficult to automate the inputs there". However, Chang backs trade finance within banks to succeed within the next three to five years.

chepicap.com