JP Morgan Bank Is Preparing To Adopt The Blockchain TechnologyAugust 28, 2018
Lori Beer, the Chief Information Officer for JP Morgan Chase’s global operation has revealed that the bank is of the idea that the Blockchain technology is “replacing the existing technology”. She said the words during the opening of a Blockchain technology service center in the Argentinian capital city of Buenos Aires.
The World’s Most Valuable Bank Is Adopting The DLT
The JP Morgan bank is the most valuable in the world in regards to market capitalization. On the other hand, it is the largest in the US with 25 million active customers. Lori Beer was officiating the opening of the Argentina headquarters that is poised to employ over 1000 local talents. The employees will be serving the entire markets that JP Morgan has a presence which currently constitutes over 100 countries.
Additionally, the center is expected to employ an additional 1000 employees by next year to bring the total number of staffs to 2000. The positive news is that over half of the employees will be offering operational and technical services on the Blockchain technology that the bank is rolling out.
JP Morgan Is Rebranding As A Digital Bank
During the grand opening of the Buenos Aires center, Lori Beer also alluded that the huge bank thinks of itself as a digital bank and the latest action is a testament to the fact that the bank is turning the vision to a reality. She went further to say that the Bank is not only after transforming itself and leaving other banking industries on the old model, but it’s also developing a Blockchain model that other banks will adopt as the new operations will “reflect” on the benefits of the “blockchain technology in the banking industry.”
So far, Lori Beer revealed that the bank has been setting aside $10 billion on the adoption of the new technology. In this figure, she revealed that over $700 million Is spent on the cybersecurity of the network as any breach to the ecosystem would be very detrimental. Additionally, she mentioned that out of the 250,000 global employees, over 50 of them are serving in the technology department. The fact that half of the Buenos Aires center employees will be serving under the DLT department means that the bank is looking towards redirecting human resources towards the technology.
The Bank’s Expected Blockchain Platform
Lori Beer confided to the press that the Bank’s Blockchain platform is based on the open source Ethereum. The JP Morgan platform is modeled on Quorum-a version of Ethereum.
She said that they are already connected to the Enterprise Ethereum Alliance and the Hyperledger. However, the new team and investments are working on scalability and privacy. Until then, the technology is “coexisting with the old technology.”
The CIO added that they are also working on incorporating the Artificial Intelligence into the Blockchain to curb fraud and other network risks. She, however, pointed out that JP Morgan Chase is not yet dealing in cryptocurrencies pending legislation and concrete laws.