It will take Three to Five Years to Adopt Blockchain in the Banking Sector, Says JP Morgan Chase
A leading bank in the U.S., JP Morgan Chase, released a report suggesting that the ongoing blockchain developments are the basis for digital money, but it will take years to adopt it. Likewise, the report says the finance industry is moving past blockchain technology.
The foundation for mainstream blockchain adoption, fast payments and digital currencies has been established, says the report. The bank said the banking sector will start adopting blockchain in the next three to five years. However, it was maintained that projects such as Facebook’s Libra stablecoin require advanced centralization.
The crypto market is revealing maturity signals such as greater institutional participation and the introduction of new contracts on regulated exchanges, says the report. However, it highlighted that cryptocurrency assets have continued to reveal utmost price volatility and claimed the following regarding Bitcoin:
“Developments over the past year have not altered our reservations about the limited role that cryptocurrencies play in global portfolio diversification or as a hedge instrument.”
JP Morgan is among the banks involved in blockchain and the development of cryptocurrency asset. Last year, Umar Farooq, in charge of the bank’s digital treasury services and blockchain, said the bank plans to try its JPM Coin digital currency with some clients prior to 2020.
A few days ago, reports had it that the bank was looking into the merger of its blockchain platform with ConsenSys.
Featured image courtesy of DreamsTime. Source: Cryptopress.