While a vocal naysayer for cryptocurrency, JPMorgan Chase (JPM) is slowly becoming the flag bearer for adopting blockchain technology. As reported by the Financial Times on April 21, the wall street giant will be employing the blockchain technology in order to reduce the number of global payments rejected by errors.
The United States-based financial giant is incorporating new features to its Interbank Information Network (IIN,) which is currently being employed by more than 220 banks around the world. Initially designed to help institutions share payments data in real time, the technology is causing delays in processing times.
JPM’s head of global clearing, John Hunter, stated that a new feature has been built that can instantly verify whether a payment is heading to a valid bank account. In the current process, the transaction can be rejected days after they were sent due to typos in sort codes, account numbers, and addresses. Hunter explained to the publishing:
“Banks straight through processing rates are in the mid-80s to mid-90s. It’s that gap — the 5 to 20 percent of payments — that have to be assessed by operations where we’re trying to alleviate some of that pain.”
As per the report, the new feature will go live by the fall and indicated that a subscription system might be introduced over time, to the currently free to use IIN.
JPM, on the other hand, has been trying to attract fintech firms to join its network and to build applications via a specially created sandbox, wherein they can gain access to data modeling, file transfers and secure messaging. Hunter told FT that this could remove many hurdles for startups, adding: “Developers only need to bring their intellect.”
The IIN pilot scheme was first launched in 2017, and in January this year, experts at the financial institution asserted that the technology will provide benefits to banks and financial systems. In February, the firm revealed that they will be launching its own cryptocurrency, dubbed the “JPM Coin,” to increase settlement efficiency.
Later, CEO Jamie Dimon suggested that the coin could purportedly evolve to have a consumer use. However, this news not well received by everyone in the cryptocurrency community, as the Ripple CEO Brad Garlinghouse claims it “misses the point” of crypto altogether.
Image Source -JPMorgan Chase Twitter