World-renowned financial company JP Morgan has aired its views on blockchain and the crypto space in its yearly financial report.
The bank in its report disclosed that Blockchain Technology is breaking new barriers but it is still a long way from global adoption. The report touched on issues like the importance of digital assets to the financial sector, stablecoins, and their viability. And even the highly controversial Facebook stablecoin Libra was not left out.
Awareness of Decentralized Technology (DLT) is on the rise. More institutions are tapping into DLT’s immense advantages and employing it in their business ecosystem. Despite this positive news, JP Morgan disclosed that mainstream adoption of blockchain technology is still a long way off. However once implemented properly, it is expected to totally revolutionize the way business is done in the future. Providing better technologies, more efficient storage as well as safer transactions.
The report added that all this will only happen if better regulations and regulatory climate are put in place. Since regulatory bodies are currently either hostile to the crypto and blockchain sphere. Or dragging their feet when it comes to regulatory clarity. The likelihood of crypto and blockchain mainstream adoption is indeed a long way off.
For now, the cryptocurrency and blockchain space should busy itself with complying with existing rules and regulations.
The 74-page report further applauded blockchain technology and its functions in the banking sector. Pointing out that DLT alone has brought rapid and effective solutions to everyday banking issues. DLT is helping the banking sector offer much more to customers. From managing collaterals to clearing and settlements, etc. Beyond the banking sector, it is providing investors and users with actual benefits.
Libra Effect on the Crypto Space
Speaking on Libra, the finance giant JP Morgan disclosed that the launch of the stablecoin will let loose a myriad of other stablecoin projects. Also pointing out that Facebook Libra singularly set regulators all over the world on their toes. This same view was also echoed by Ripple in its 2019 end of the year report.
For now, Facebook’s Libra has drawn the attention of governments and regulators all over the globe. With many countries currently clamoring for a personal stablecoin (CBDC).
The report further revealed that Facebook Libra has a high chance of penetrating developing economies and markets. Especially as a payment tool. In conclusion, JP Morgan Perspectives pointed out that private money is on the edge of taking over the world, just like some fiat money today. Adding that “2019 will be remembered for the rise of digital money.”
Read the full report here.