Joyce Chang, Global Research Chair at JPMorgan Securities, said the blockchain technology was still far from institutionalized and had yet to overcome major obstacles before it could move to cross-sector wide adoption. Chang made his comments during an interview on the TV show "Bloomberg Daybreak: Americas" on February 7th.
Chang pointed out that the adoption of blockchain – if it was not yet institutionalized – is led by industries with special characteristics where technology can bring real and immediate efficiencies. She highlighted sectors that rely on heavy legacy paperwork systems, giving the example of trade finance, where she said she expected the blockchain to have a particular impact over the next few years. next three to five years.
Another key area that she has isolated is the sharing of information, highlighting the ongoing expansion of JPMorgan's blockchain-based interbank data network, which already has 157 participating banks:
"We went beyond experimentation. That's still the case, but we're seeing increased adoption of technology. Spain is ahead. The Australian stock market too.
Nevertheless, it identified the main obstacles to be overcome progressively before the technology can offer a transformational, global, intersectoral change:
"How do you get the scale when the very nature of [the technology] is supposed to be decentralized? This is the trap of the blockchain. I think they're still working on regulatory issues, also related to privacy and data security. "
Given the complexity of solving these problems, Mr. Chang argued that the implementation of the technology thus remained essentially limited to specific use cases and that some industries posed significant difficulties. for technology at this stage, such as in the supply chain and logistics. , where the challenge of automating end-to-end data capture remains considerable, she suggested.
As Chang explained, the use of blockchain to digitize business documents and automate multiple trade finance processes has actually gained ground in recent months. In January, Standard Chartered, a London-based multinational banking and financial services subsidiary, concluded its first blockchain-based trade finance deal.
StanChart is also part of a dozen major banks, including HSBC and BNP Paribas, which jointly developed and launched a chain trade finance platform calling eTrade Connect, the fall latest.
Chang previously exposed his stance on the blockchain's significant impact on trade finance, adding that for global payments, it is unlikely "to reinvent [the] system but [rather to] make marginal improvements. "