“IIN will enhance the client experience, decreasing the amount of time – from weeks to hours – and costs associated with resolving payment delays. Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks,” said Emma Loftus, head of global payments and foreign exchange for JPMorgan Treasury Services.
Additional banks are likely to join the network in the coming months, with a particular attention on the correspondent banking market.
Despite JPMorgan Chase CEO Jamie Dimon’s anti-bitcoin position, blockchain technology, the underpinning technology of bitcoin, has been an area of emerging emphasis for the Wall Street mega-bank.
With significant resources allocated to ingenuities like Quorum, the Hyperledger Project and the Enterprise Ethereum Alliance, the future of blockchain technology looks very optimistic.
“Blockchain technology is something that everyone is excited about, but we have to remember that bitcoin is one of the very few instances. And the other times when blockchain was used they were basically Ponzi schemes, so it’s very important that if we go forward with it, we’re sure that it’s not going to be used to exploit,” Kim said.
The World Bank is an international bank that lends money and other help to developing nations for infrastructure with the goal of reducing poverty.
“It takes three seconds, three seconds, to transfer as much as $160,000 to anybody who’s part of the Alibaba network, because they can assess creditworthiness in three seconds,” he said.
In June, the World Bank founded a blockchain laboratory to encourage research projects seeking to apply the technology capital formation.
“What we recognize is that whenever there is a new technology or process or development, whether it’s small or large, is that the success of those individual systems and innovations are primarily dependent on the human processes that accompanies them,” said Randeep Sudan, a digital strategy and government analytics advisor at the World Bank.
“Jamie ‘Demon’, as I like to call him, of JPMorgan came out and said bitcoin was a fraud. Three days later, it was shown that JPMorgan was buying up a ton of bitcoin in the marketplace,” said Jeff Berwick of The Dollar Vigilante in an interview with Luke Rudkowski of We Are Change.
“He was saying that to get the bitcoin price down. I think they’re buying it because they’re realizing they can’t stop it, it’s going to be huge, it’s going to go up in value tremendously, and they’re trying to figure out how they can take advantage of it or how they can control it – but the real deal is they can’t.”
Meanwhile, Blockswater, an algorithmic liquidity provider for blockchain-based assets in Sweden, has filed a market abuse complaint on Dimon and JPMorgan.
Blockswater claims Dimon intentionally spread dishonest and misleading information.
“I could care less about bitcoin. I don’t know why I said anything about it. The blockchain is a technology which is a good technology. We actually use it. It will be useful in a lot of different things. Gold bless the blockchain. Cryptocurrencies, digital currencies, I think are also fine. JPMorgan moves $6 trillion around the world every day, and we don’t do it in cash, it’s done digitally. If it can be done digitally with the blockchain, so be it. But it will still be a dollar cryptocurrency. What I have an issue with is a non-fiat cryptocurrency. So crypto sterling, euro, yen, they are all fine. I don’t personally understand the value of something that has no actual value. You all can do whatever you want and I don’t care.
“I could care less what bitcoin trades for, how it trades, why it trades, who trades it. If you’re stupid enough to buy it, you’ll pay the price for it one day. I’ve also told people that it can trade at $100,000 before it trades to zero. Tulip bulbs traded for $75,000 or something like that.
“The only value of bitcoin is what the other guy’ll pay for it. Honestly I think there’s a good chance a lot of the buyers out there are out there jazzing it up every day so that maybe you’ll buy it too, and take them out.
“I quite mean that by the way. People are very good at manipulating the press these days and getting news out. Every day, you have CNBC, nonstop bitcoin — Who cares about bitcoin? The world economy’s so big, JPMorgan alone, $6 trillion, we move all this money, and bitcoin in total, all these currencies, $50 billion dollars, maybe a billion dollars trades a day.
“The other thing I’ve always [said] about bitcoin, governments — and this is not a technological statement — governments are going to crush it one day. Governments like to know where the money is, who has it and what you’re doing with it, in case you haven’t noticed. Right?
“And governments like to control their currency, like to control their own economy. So China’s already put curbs on it. Japan, they say Japan accepted bitcoin. No they didn’t. What I gather Japan did was they call it J-coin. It’s a yen cryptocurrency. It’s not a non-fiat [digital currency].
“People have said legitimately ok, it’s close to gold. Not really. Gold is limited, it’s been around for along time. [People also say bitcoin is] close to a fiat currency. Not really. A fiat currency is when a government says this is your legal tender, you have to give it and accept it.
“And a central bank — of course they can misuse it. The central bank [can also] inflate it. So there is a use case for bitcoin. If you live in Venezuela, North Korea, if you’re a criminal, great product. I mean that. It’s better than cash or deposits in that country. Cuba.
“But this is the last time I’m ever going to answer questions about bitcoin because I really don’t care.
“When I made that ‘stupid statement’ [calling bitcoin a] fraud, my daughter sent me an email saying, ‘Dad, I own two bitcoins.’ My formerly smart daughter.”