A former JPMorgan Chase executive, Pang Huadong, has stated that blockchain “may be the key to avoiding the next global financial crisis”. Huadong was vice president of North American investment banking at JPMorgan Chase and is currently an honorary academic advisor at the Asian Blockchain Institute.
Pang claims that his time working at JPMorgan through the global economic crisis convinced him that blockchain technology would be the instrument for installing faith back into the global financial market after the huge downturn of 2018.
He comments that the disruptive impact of blockchain is exactly what is needed to avoid a repeat of the crisis reoccurring in the future: He explained:
“[When I began to work at JPMorgan in 2007,] 13 people managed [the bank’s] USD 40+ billion [assets]… when the 2008 financial crisis was at its worst, [the] average daily loss was USD 300 million. It is only gradually that I understood that blockchain technology may be the key to avoiding the next global financial crisis.”
The reason cited was that he saw blockchain’s innovative nature eliminating the need for intermediaries was its most impacting factor on regaining investor trust, and although he admitted that the tech was still young, he saw “limitless prospects” for its application in the financial sector.
Pang added that blockchain implementation in financial systems would not only limit risk but could also have the potential to reduce costs in the process.
Despite China’s critical stances on cryptocurrencies and initial coin offerings (ICOs), the crypto-skeptic government has ramped up its support of blockchain technologies with a CNY 10 billion (USD 1.48 billion) investment fund to support public blockchain projects, as Bitcoin News reported yesterday.
The South China Morning Post suggests that Chinese companies that have filed blockchain-related patents applications now represent more than half the world’s total, showing China’s advancement in this technological space. Some 41% of startups at the last count, that is the first quarter of 2018, were blockchain-related companies.
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