JP Morgan CIO: Blockchain Will Replace Existing Technology

JP Morgan CIO Lori Beer said at a press conference in Buenos Aires that blockchain will “replace existing technology” in a few years, according to Argentinian website Cripto247 August 23.

“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 said.

Beer explained to Cripto247 that JP Morgan uses blockchain technology to “simplify the payment process and to store customers’ information related to KYC (Know Your Customer) policy.” She added that blockchain technology helps to prevent money laundering. Beer further explained the use 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 asked about JP Morgan’s position on buying cryptocurrencies. She explained that the bank only supports what is regulated and has specialists who are “evaluating what is happening” with virtual currencies. When asked about the institutional position regarding Initial Coin Offerings (ICOs), Beer preferred not to respond.

Earlier in August, Cointelegraph reported that JP Morgan Chase’s CEO Jamie Dimon was optimistic about blockchain. “[JPMorgan] is testing [blockchain] and will use it for a whole lot of things,” he said.

In May, JP Morgan Chase filed a patent for a blockchain powered peer-to-peer payments network that could be used for intra- and inter-bank settlements. The patent application proposes using a distributed ledger to process payments in real-time, without having to rely on a trusted third party to hold the true "golden copy” of the audit trail.