The cryptocurrency sector is the most common application of blockchain technology because it was the first. However, it is not the only application. Blockchain technology can be applied in many other industries other than the financial industry. Many companies across industries are beginning to explore the technology. This why it’s not a surprise that JPMorgan is one of the many well-known brands that believe in blockchain technology.
JPMorgan Says Blockchain Technology Is Making Waves Outside The Cryptocurrency Industry
The research chair of JPMorgan, Joyce Chang said that blockchain technology will significantly impact different sectors even if the cryptocurrency industry continues to falter. In her words:
“Blockchain technology may not reinvest the traditional payment system but it will help improve it marginally. The most significant impact of blockchain technology will be in trade finance in the next three to five years.”
Blockchain solutions for the trade-finance sector are more common than solutions in other sectors because of the benefit of decentralization. The technology is being used for many other purposes like recording and verification of transactions. During an interview, Chang made reference to the Interbank Information Network that was powered by Quorum but developed by JPMorgan. The technology is based on the Ethereum blockchain and it is now being used by 157 banks from different parts of the globe. The platform was created to solve some of the challenges that may be encountered during Interbank Information sharing and help speed up payments to beneficiaries.
Bitcoin (BTC) Price Today – BTC / USD
Many Spanish banks have stated adopting the use of blockchain technology. Chang said that Banco Santander has been working on integrating blockchain technology in the mainstream banking industry and this is a good thing for the sector. Apart from Banco Santander, BBVA is using blockchain technology. The institution was the first to bank in the world to use blockchain technology to process corporate loans worth more than $86 million.
Chang noted that there are still some challenges facing blockchain technology. Things like scalability, regulation, cost-efficiency and integration need to be sorted out for proper adoption to be achieved. Also, improvement needs to be made in the cryptocurrency industry. After the bear market was initiated in the year 2018, the market has been unable to recover. Cryptocurrencies fell by more than 90% from their all-time-highs. Bitcoin traded almost as high as $20,000 before it started falling and eventually fell as low as $3150 in December. At the time of writing, BTC was trading around $3,387.15.
Chang believes that the price of cryptocurrencies is now lower than the average cost of mining. The trading volumes have also fallen significantly and it still hasn’t gotten the interest of many major retailers. In her words:
“It hasn’t been able to move passed the regulatory issues facing the industry. The SEC still hasn’t created a clear regulatory framework for cryptocurrencies. If the cryptocurrency industry achieves stability and a degree of regulatory certainty, things will get better and this may help boost the adoption of blockchain technology.
Notwithstanding, Chang sees the potential in blockchain technology beyond cryptocurrencies. She concluded:
“We must learn to define blockchain technology without defining cryptocurrencies. The blockchain industry has made a lot of progress but a lot still needs to be done.”
Do you think blockchain technology can reach massive adoption without cryptocurrencies?