JPMorgan Chase & Co launched a new payment processing network today that uses blockchain technology. This new payment system has been launched in partnership with Royal Bank of Canada and Australia and New Zealand Banking Group.
JPMorgan Chief Jamie Dimon has spoken out against bitcoin, although he and other banking executives have praised blockchain technology. However, the timing this latest venture make the reason for his recent tirades against bitcoin a little obvious.
JPMorgan said on Monday:
“The Interbank Information Network will allow payments to reach beneficiaries faster with fewer steps and better security”
JPMorgan and many of its competitors have invested millions of dollars in the technology in hopes that it can be adapted to simplify and lower the costs of processes such as securities settlement, loan trading and international money transfers.
Emma Loftus, head of global payments and foreign exchange at J.P. Morgan Treasury Services said:
“Blockchain capabilities have allowed us to rethink how critical information can be sourced and exchanged between global banks,”
The network will be powered by Quorum, a blockchain technology developed by JPMorgan. Other banks are expected to join in the coming months, the bank said.