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"While J.P. Morgan's Jamie Dimon has bashed bitcoin as a "fraud," the bank chief and his managers have consistently said blockchain and regulated digital curren

"While J.P. Morgan's Jamie Dimon has bashed bitcoin as a "fraud," the bank chief and his managers have consistently said blockchain and regulated digital currencies held promise." They are only doing so because it saves them a ton of money.

JumpCrisscross 8y ago
> They are only doing so because it saves them a ton of money This is less about cost savings and more about lock-in and liability. Customers can move their money around by wire or ACH with anyone. They can only do it with JPM coin through JPMorgan. With such treasury services, moreover, fraud is a big cost centre. A cryptocurrency might be a good way to shift liability for unwanted transactions away from the bank and onto customers.
- bob_theslob646 8y ago
  You are correct, but there is a tremendous incentive for them to save on costs by using their own blockchain. "The blockchain potential in financial services is huge, and has several applications which span across payments, capital markets, trade services, investment and wealth management, securities and commodities exchanges. Blockchain technology can be considered as one of the main drivers to achieve a substantial cost saving. According to a Santander FinTech study, distributed ledger technology could reduce financial services infrastructure cost between US$15 billion and $20 billion per annum by 2022, providing the possibility to decommission legacy systems and infrastructure and significantly reduce IT costs." https://www.pwc.com/m1/en/media-centre/articles/blockchain-new-tool-to-cut-costs.html https://www.pwc.com/m1/en/media-centre/articles/blockchain-n... https://www.wsj.com/articles/the-cost-cutting-potential-of-blockchain-1520993100 https://www.wsj.com/articles/the-cost-cutting-potential-of-b... https://www.businessinsider.com/heres-how-banks-can-save-big-with-blockchain-2017-1 https://www.businessinsider.com/heres-how-banks-can-save-big... https://www.globalcustodian.com/settlements-costs-fall-27-billion-2030-using-blockchain-research-finds/ https://www.globalcustodian.com/settlements-costs-fall-27-bi... https://www.ft.com/content/b6171016-171f-11e8-9e9c-25c814761640 https://www.ft.com/content/b6171016-171f-11e8-9e9c-25c814761...
  - consp 8y ago
    All fun and games, but to achieve that you can use existing database solutions which have transaction verifiability and auditing build in. Even third party verification is possible if required. This blockchain mania at banks does not add anything as long as they keep using private ledgers and thus do not require zero-trust proofs.
    - ludjer 8y ago
      Having worked with existing solutions in a top 4 bank in my country I would rather be a beggar then work with those systems. The banking system needs change and needs it badly, they are so far behind the rest of the industry. Blockchain is still way more decentralized then current solutions which mainly work on a Master/Slave HA mode.

JumpCrisscross 8y ago

> They are only doing so because it saves them a ton of money This is less about cost savings and more about lock-in and liability. Customers can move their money around by wire or ACH with anyone. They can only do it with JPM coin through JPMorgan. With such treasury services, moreover, fraud is a big cost centre. A cryptocurrency might be a good way to shift liability for unwanted transactions away from the bank and onto customers.

bob_theslob646 8y ago
You are correct, but there is a tremendous incentive for them to save on costs by using their own blockchain. "The blockchain potential in financial services is huge, and has several applications which span across payments, capital markets, trade services, investment and wealth management, securities and commodities exchanges. Blockchain technology can be considered as one of the main drivers to achieve a substantial cost saving. According to a Santander FinTech study, distributed ledger technology could reduce financial services infrastructure cost between US$15 billion and $20 billion per annum by 2022, providing the possibility to decommission legacy systems and infrastructure and significantly reduce IT costs." https://www.pwc.com/m1/en/media-centre/articles/blockchain-new-tool-to-cut-costs.html https://www.pwc.com/m1/en/media-centre/articles/blockchain-n... https://www.wsj.com/articles/the-cost-cutting-potential-of-blockchain-1520993100 https://www.wsj.com/articles/the-cost-cutting-potential-of-b... https://www.businessinsider.com/heres-how-banks-can-save-big-with-blockchain-2017-1 https://www.businessinsider.com/heres-how-banks-can-save-big... https://www.globalcustodian.com/settlements-costs-fall-27-billion-2030-using-blockchain-research-finds/ https://www.globalcustodian.com/settlements-costs-fall-27-bi... https://www.ft.com/content/b6171016-171f-11e8-9e9c-25c814761640 https://www.ft.com/content/b6171016-171f-11e8-9e9c-25c814761...
- consp 8y ago
  All fun and games, but to achieve that you can use existing database solutions which have transaction verifiability and auditing build in. Even third party verification is possible if required. This blockchain mania at banks does not add anything as long as they keep using private ledgers and thus do not require zero-trust proofs.
  - ludjer 8y ago
    Having worked with existing solutions in a top 4 bank in my country I would rather be a beggar then work with those systems. The banking system needs change and needs it badly, they are so far behind the rest of the industry. Blockchain is still way more decentralized then current solutions which mainly work on a Master/Slave HA mode.