While JP Morgan, may not have the kindest words for cryptocurrencies, it certainly hasn’t been far behind when it comes to advancing blockchain development. A few years ago, it created its own distributed ledger technology (DLT) known as Quorum which was backed by Ethereum. The platform was primarily used to process faster payments and smart contract development.
In 2017, using Quorum the bank launched a pilot of its Interbank Information Network (IIN). In 2018, almost 75 banks became a part of the network. Recently, news portal Financial Times reported that IIN would help the banks to resolve issues in a timely manner, which would otherwise take weeks.
The news report claimed that over 200 banking institutions which enables payment data to be shared as well as sort through issues quickly and process payments faster. The head of global clearing of JP Morgan, John Hunter said, “Now the bank has created a feature which would allow verifying payments in real time, making sure the payment goes to the proper account without being rejected or delayed.”
He added that the system will be ready to start by Q3 2019. Though it will work with domestic and trans-border financial transactions, J.P. Morgan believes it will be more effective for the latter, since error rates are higher in trans-border payments.
Last year, the bank garnered quite a lot of controversy when it announced that it would be launching its own coin, after denigrating cryptocurrencies. In November it had said, “We are big believers in Ethereum. There are people outside our firm using Quorum to tokenise gold, for instance. They wrap a gold bar into a tamper-proof case electronically tagged, and they can track the gold bar from the mine to end point – with the use case being, if you know it’s a socially responsible mine, someone will be willing to pay a higher spread on that gold versus if you don’t know where it comes from. Diamonds is another example.”
Liked what you read? Join us on Telegram
The post JP Morgan to Use Blockchain to Process Faster Payments appeared first on Crypto-News India.