These have been a fluctuating relationship between JP Morgan, a multinational investment bank and the cryptocurrencies. Though the bank has shown immense lethargy towards bitcoin yet they are truly fascinated by the blockchain technology and are enthusiastically using it in various internal schemes.
In a recent interview in August 2018, the chief information officer, Lori Beer boldly claimed that the blockchain is a revolutionary technology which will soon replace the conventional financial system in coming years.
However, beer’s expressions are in total contrast to the JP Morgan’s passive behaviour towards decentralized ledger technology (DLT). Hence making the controversies interesting.
JPMorgan’s ever-changing attitude towards crypto
Evolution of blockchain and virtual currencies has produced jeopardy for most financial institutions. Some have actively participated in the campaign while others have been too obstinate to accept it. However, JP Morgan has shown temperamental gestures in this field.
Though the bank has shown some interest in the technology yet its CEO Jamie Dimon has been a critic throughout. According to the investigations, there has been a sharp contrast between the company’s appraisal in this domain and Dimon’s opinion.
A white paper published by JP Morgan in November 2016 announced about Quorum, which works on blockchain technology and built on Ethereum protocol.
Quorum uses cryptography to safeguard sensitive data. Hence permitting only those who have the authentic approval to access certain transaction data.
In April 2018, JPMorgan finally examined the Quorum blockchain which showed a huge participation from a number of high-profile banks.
Considerations are being made to make Quorum an isolated unit to make the platform more accessible and convenient to the market and individuals. A blockade to access makes it unlikely for the market competitors to use a platform that is controlled by a contestant bank.
The changing time
A precise and more acceptable notion of the company’s attitude towards blockchain technology and cryptocurrencies has been stated by Lori Beer, the company’s CIO.
Her declarations of blockchain’s acceptance and the influence it will have worldwide cannot be underestimated. It seems promising enough to be a great driving force in JPMorgan’s Quorum project.
According to Beer, the company’s effort is to generate a blockchain platform that aims to aid the company’s objective as well as the client’s demands.
We are working in diverse directions to solve the purpose. A blockchain with open code based on Ethereum has been developed. Though the expected security and surveillance to solve the purpose has not been attained yet. We have connected to Hyperledger and Enterprise Ethereum Alliance whose application is more important than the blockchain technology itself. The objective is not just to reduce the cost but to generate prospects to develop new protocols, she added.
Beer also said that the bank is examining the present scenario of the cryptocurrency domain and ensuring that it would aid in regulating the financial market.
The company’s efforts have not made them actively involved in the campaign yet. But their perception and enhanced curiosity in this subject tell a lot about the progression it is about to make in the financial market in the coming years.