The former vice president of the global investment banking giants JPMorgan Chase has said that blockchain “may be the key to avoiding the next global financial crisis,” as reported by China Economic Times.

Pang Huadong, The former Vice President of JP Morgan Chase, stated that his experience during the 2008 financial crash has stated that transparency will allow us to avoid this happening again and that blockchain will play a major role in establishing a trustworthy global financial system.

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

Huadong went on to explain that although the technology is still “at a very early stage,” its development prospects are “limitless.” The key unique selling point for blockchain is the ability to bring about trust in a decentralised manner, removing the need for a middle man or trusted third party.

Blockchain may be the key to avoiding next financial crisis

The major issue which caused the 2008 global meltdown was around dishonest practices, blockchain can completely remove this risk as it can “establish trust mechanisms at the lowest cost.”

Blockchain is continuously moving towards mainstream markets, with most major companies now doing serious research into integrating blockchain technology. Right now, there are no other technologies which can compete with blockchain, creating a trust mechanism for previously untrustworthy systems like financial markets.

There is almost no argument that blockchain will be implemented into financial industries in the near future, let us know your thought on whether blockchain may be key to avoiding the next financial crisis.

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