JP Morgan CIO Lori Beer says that blockchain will “replace existing technology” in a couple of years, at a press conference in Buenos Aires as reported by Cripto247 on August 23.
Beer expressed: “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 disclosed to Cripto247 that JP Morgan utilizes blockchain technology to “simplify the payment process and to store customers’ information related to KYC (Know Your Customer) policy.” She added that blockchain technology prevents illegal tax avoidance. Beer further clarified the utilization of blockchain technology by the bank:
“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.”
Beer was also questioned regarding JP Morgan’s position on purchasing cryptocurrencies. She clarified that the bank just supports what is regulated and has experts who are “evaluating what is happening” with virtual currencies. When inquired with respect to Initial Coin Offerings (ICOs), Beer preferred not to react.
In May, JP Morgan Chase filed a patent for a blockchain powered p2p payments network that could be utilized for intra-and interbank settlements. The patent application proposes utilizing a distributed ledger to process payments continuously, without relying on a trusted third party to hold the genuine “golden copy” of the audit trail.
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