update 27 October 2021

JP Morgan Says The Banking Sector Isn’t Ready For Blockchain Adoption

America’s largest bank now claims that the banking sector isn’t ripe for Blockchain adoption. In a recent report, JP Morgan Chase acknowledges that the ongoing blockchain developments are the foundation for the adoption of digital currencies. However, it holds that full adoption will take years. The report also suggests that the bank is looking beyond blockchain technology.

According to the report, the foundations for mainstreaming blockchain adoption, expedited payments and digital currencies is already set. It estimates that it will take the banking sector three to five years to start embracing blockchain. Further, it contends that projects including Facebook’s Libra stablecoin require increased centralization.

Maturing Market

The report maintains that the crypto market is maturing. Besides heightened institutional participation, it points to the introduction of new contracts on regulated exchanges as signals indicative of the said maturity. That said, the report highlighted the continued volatility in crypto assets.

Regarding Bitcoin, the report states:

 

Developments over the past year have not altered our reservations about the limited role that cryptocurrencies play in global portfolio diversification or as a hedge instrument.”

JP Morgan Coin Pilot

Together with other banks, JP Morgan has been at the forefront of blockchain and digital asset development. Umar Farooq, the bank’s head of digital treasury services and blockchain revealed last year that the bank was mulling a pilot of its JPM coin before 2020.

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Reports emerging a few days ago suggested that the bank was exploring the possibilities of merging its blockchain platform with ConsenSys.