Blockchain might be the solution against the next financial crisis

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JP Morgan Chase former president for North America Pang Huadong had released a statement that supports the use of blockchain saying that it can be the key element to avoid the next global financial crisis.

He holds the position of honorary academic advisor at the Asian Blockchain Institute and according to his past experience in JP Morgan in 2008 during the difficult moments he was prompted to think about what possibilities the blockchain could bring regarding transparency and trust in the global economic system stating:

“When I began to work at JP Morgan in 2007, 13 people managed the bank’s 40+ billion dollars worth of assets…when the 2008 financial crisis was at its worst, the average daily loss was 300 million dollars. It is only gradually that I understood that blockchain technology may be the key to avoiding the next global financial crisis.”

He also added that despite the young age of the blockchain technology its development prospects are limitless and establishing decentralized and transparent systems has a tremendous potential to dramatically lower the global financial risk and “establish trust mechanisms at the lowest cost.”

Despite the government on China’s hard policy on crypto remains, blockchain has gained a huge amount of attention in their political, academic and financial sector that even the president Xi Jinping had a few good words for it.

China’s Ministry of Science and Technology news paper had reported on the country’s efforts to lead an international research group that will help the implementation and standardization of Internet of Things (IOT) and blockchain technology.