JP Morgan Securities Chair Joyce Chang: Blockchain Has a Long Way to Institutionalized

During the last year, people predicted that the increasing number of institutional investors entered into the cryptocurrency industry will lead to an widespread adoption of cryptocurrencies and blockchain technology, which will ultimately boost price of cryptocurrencies in the market. On the contrary, the price of cryptocurrencies has fallen sharply against the US dollar.

According to Bloomberg Daybreak Americas, even though blockchain technology has made some progress, Joyce Chang, the global research chair at JPMorgan Securities, said blockchain is far from institutionalized.

Chang told Bloomberg's Daybreak Americas that there are still many hurdles to overcome before applying blockchain technology on a large scale. In her view, blockchain technology is being driven by industries that can immediately benefit from it.

These sectors that pioneered blockchain technology rely heavily on cumbersome traditional paperwork systems, she said. In the case of trade finance, she expects blockchain technology to play an important role in the next three to five years. Another area that will benefit from blockchain technology in the coming years is the financial sector, Chang said. She said JP Morgan is developing an interbank data network based on blockchain technology, with 157 Banks currently participating.

“We have moved passed the blockchain experimentation stage. While it is still in use case form, we are seeing an increase in the adoption of the technology. ”

But there are many challenges that must be addressed before blockchain technology can be used for cross-industry and modify the global economy. She said:

“How can the technology scale when its core principle is decentralization? That’s the catch about blockchain. I believe there are still a lot of regulatory, security and data privacy issues that need to be addressed if blockchain technology is to scale.”

Although it is easy to identify these problems, how to solve them is quite complicated. In her perspective, the use of blockchain technology in the trade finance industry can effectively digitize and automate the processes. This is why the technology has recently created such an impact in the field.

According to smartereum, Standard Chartered completed a trade finance deal using blockchain technology in January. It was also the first time the bank had used the technology to complete such a deal and was a huge success. Meanwhile, standard chartered bank was one of the banks involved in the development of eTrade Connect, a blockchain trade financing platform, last year.

In conclusion, Chang believes blockchain technology will help improve the global payments industry, but it won't be enough to completely reshape the system.

Image: pexels.com

Author: Max Li

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