Former JPMorgan exec: Blockchain is key to preventing another financial crisis

Former JPMorgan Chase vice president of investment banking has pushed blockchain technology as the key to avoiding another financial crisis like that seen in 2007.

Pang Huadong, who worked at the bank during the crash’s peak period, told the China Economic Times that he believes the emerging technology behind crytocurrencies could help prevent another crisis in the financial world.

He said: “[When I began to work at JPMorgan in 2007,] 13 people managed [the bank’s] $40+ billion [assets]…. when the 2008 financial crisis was at its worst, [the] average daily loss was $300 million. It is only gradually that I understood that blockchain technology may be the key to avoiding the next global financial crisis.”

Above all, he highlighted blockchain’s ability to establish disintermediated and transparent systems as having the potential to “establish trust mechanisms at the lowest cost.”

Huadong is currently an honorary academic advisor of the Asian Blockchain Institute.