Ex-Executive of JPMorgan: Blockchain could be the key to avoid the next global financial crisis

The former vice president of US investment banking at JPMorgan Chase has said that the blockchain "may be the key to avoiding the next global financial crisis," the China Economic Times reports today, July 23.

Pang Huadong, currently an honorary academic advisor to the Asian Blockchain Institute, said his experience at JPMorgan during the peak of the financial collapse of 2008 led him to believe that blockchain could be the fundamental technology for establishing transparency and confidence in the global economic system:

"[When I started working at JPMorgan in 2007,] 13 people managed more than $ 40 billion [in banks] [in assets] ... when the 2008 financial crisis was at its worst, the average daily loss was $ 300 million. Only little by little I understood that blockchain technology can be the key to avoiding the next global financial crisis. "

Huadong added that while the technology is still "at a very early stage", its development prospects are "unlimited." It isolated the fundamental innovation of the blockchain - that of establishing disintermediated and transparent systems - because it has the potential to radically reduce global financial risks and "establish trust mechanisms at the lowest cost."

While the Chinese government's policy remains harsh with decentralized cryptocurrencies, the blockchain has been gaining more and more adherents among political, academic and financial sector leaders, and even the country's president, Xi Jinping, has openly praised its potential. this spring.

Just last week, the official newspaper of the Ministry of Science and Technology of China reported that the country would lead an international research group on the standardization of the Internet of Things (IoT) and blockchain technology.

On July 16, the deputy director of the Ministry of Information Technology of China urged the country to "join forces" to promote blockchain as a "central" technology for the new digital economy, and advocated alleviating institutional constraints in order to optimize the environment for its integration. The G20 sets the deadline for "very specific recommendations" on crypto.