JPMorgan Chase & Co. says 2019 will be “remembered for the rise of digital money.”
In a 74-page report released on Friday, the New York-based investment banking powerhouse details its take on how global finance is being impacted by the digital economy and the new currencies that will power it.
From China’s upcoming digital yuan to JPMorgan’s own JPM Coin, digitized money based on blockchain technology popularized by the world’s leading cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), will have a profound effect on payments and the banking industry.
The narrative is an expansion of the bank’s position that blockchain technology — not Bitcoin itself — can drive greater efficiency in finance. According to Bloomberg, the research report cites developments by the New York-based fintech Paxos as an example of how banking procedures are rapidly evolving due to the integration of blockchain technology.
The researchers note,
“The groundwork is now in place for more mainstream adoption of blockchain technology at the same time that the foundation is being established for the development of digital currency and fast payments.”
Paxos, which digitizes and mobilizes assets, has launched the first live application of blockchain technology for listed US equities. Announced on Thursday, the firm’s private, permissioned blockchain solution, Paxos Settlement Service, allows two parties, broker-dealers Credit Suisse and Instinet, to bilaterally settle securities trades directly with each other.
Also in the pipeline: Facebook’s Libra project, which JPMorgan CEO Jamie Dimon has said “will never happen.” The controversial project just got a boost this week from e-commerce platform giant Shopify, which joined the Libra Association as a new member.
Sweden’s central bank is also pushing for a digital tech approach to money.