J.P. Morgan: The Groundwork for the Massive Adoption of Blockchain Is Now in Place

A study by financial giant J.P. Morgan says that the development of blockchain technology accelerates the transition to the use of cryptocurrencies.

The investment bank’s 74-page report was published last Friday, February 21, its authors analyzed the potential of the blockchain and came to the conclusion that such a technology will increase security and improve the automation of the banking sector.

2019 was an important stage in the development of the blockchain industry. Last year, the number of launched financial applications based on decentralized technologies increased significantly.

J.P. Morgan experts believe that the main advantage of the blockchain is that it can be used to carry out cross-border transactions with minimal costs. In addition, many banks have already begun issuing bonds on the blockchain platform, which also indicates the growing popularity of the technology.

Analysts identified three key projects in the industry last year — Libra, JP Coin and Gemini Coin.

The authors of the study are also confident that in the near future we will see how the central bank tokens (CBDC) appear, which will accelerate the development of the relevant payment infrastructure. Many investment companies and funds are already transferring part of their portfolio to cryptocurrencies. This is done in order to hedge losses associated with geopolitical risks.

Author: Marko Vidrih

Featured image credit: ft.com