A couple of years ago, no one knew about blockchain technology but right now many traditional finance companies are exploring ways to give the tech a front seat.
New York-based JP Morgan Chase and Co. will not be left behind and seem to have realized the numerous benefits of the application of blockchain. In a recent press conference in Argentina, Chief Information Officer Lori Beer listed the invention, alongside AI and API as the key innovation focus for JP Morgan.
A closer look at Beer’s comment has made it clear that the American multinational investment bank and financial services company plans to lead their counterparts by investing big in technologies like the blockchain. Will it be a failed investment? The firm doesn’t think so and the facts are solidly backing the choice.
“In a few years, blockchain will replace the existing technology,” CIO Lori Beer stated.
Even before blockchain technology became as popular as it is today, precisely in 2015, JP mapped out around $9 billion for investment in blockchain technology, robotics, and big data. That early move does not show any sign of doubt but gives remarkable proof of just how much the firm believes in the DLT.
Since then, the company has published report on the implications of blockchain technology on financial services system. It has also built Quorom, an enterprise-focused version of the Ethereum blockchain that aims to promote DLTs for financial services companies.
At the recent press conference, Beer shed more light on why JP Morgan is banking big on blockchain technology. It is not only the need for a fast system to transact millions of transactions daily.
“We will see a greater and wider use of blockchain in a few years. Today it only coexists with the current one. We seek not only cost reduction but opportunities for the development of new products,” Beer explained.
Going further, she revealed that JP Morgan is counting on its connections with Hyperledger and the Enterprise Ethereum Alliance in order to solve the issue of privacy and scalability. The firm will also continue to explore other uses of blockchain technology.
Instead of taking the back seat when it comes to blockchain, the financial company is putting the technology in the front row and wants to build a firm that lasts long into the future. The rewards may not be obvious right now, but it is one that will definitely pay off.