JP Morgan CIO: ‘Blockchain application more important than tech itself’

Blockchain will replace existing technology, JP Morgan CIO Lori Beer told the audience at a press conference in Buenos Aires.

The firm already uses blockchain to streamline its payment process and store customer information, reports Cripto247, as well as to help prevent money laundering.

Beer continued: “We are currently following many paths. We invented a blockchain with an open code based on Ethereum. Actual blockchain technology has not yet resolved issues with privacy and scalability that we needed.

“We are connected to Hyperledger and Enterprise Ethereum Alliance. The application of this technology in business is more important to us than the technology itself. We are looking not only for cost reduction, but also for opportunities to develop new products.”

Though JP Morgan appears to be enthusiastic about the potential for blockchain technology, then, it has not been so confident about cryptocurrency in the past.

Earlier this month, CEO of JP Morgan Jamie Dimon called crytocurrencies a ‘scam’ and said he had ‘no interest’ in them. The firm’s Umar Farooq, meanwhile, took a slightly different view.

“We all believe in blockchain good,” he said. “I wouldn’t go so far to say cryptocurrencies bad. I would say [blockchain] and cryptocurrencies have issues.

“Everyone I talk to in the banking industry, regulators, central banks – everyone sees the potential. But everyone is trying to fundamentally grapple with the issues. I wouldn’t say crypto is bad, but I think crypto needs some evolution.”