JPMorgan Will Develop Payment Blockchain System For Siemens

JPMorgan will develop a blockchain payment system for Siemens as the two companies said that it will be the first-of-its-kind application ever as we can see more in our latest blockchain news today.

Wall Street Bank JPMorgan will cooperate with German industrial group Siemens in order to develop a blockchain-based system for payments according to the latest reports. The system will be used to automatically transfer money in USD for the time being while Euros will be supported next year between Siemens’ own accounts.

The application will be geared towards the automation of the different actions required in the recording and the verification of the payments. The infrastructure uses JPMorgan’s blockchain unit Onyx and Siemens is the first anchor client. The US Baking giant has a list of clients for the Onyx system according to the global head of coin system Naveen Mallela. The infrastructure will take programmable payments beyond the current uses like direct debits and standing orders. The development represents the growing appetite among the world’s biggest institutions to harness blockchain technology to improve the efficiency and cost of day-to-day operations.

As recently reported, A central bank digital currency network could save companies around the world over $100 billion in a year in transaction costs when it comes to cross-border payments. The new JPMorgan report explained that the CBDCs could be really helpful in saving on cross-border costs. The report was published by consulting company firm Oliver Wyman and JPMorgan called “Unlocking $120 billion Value In Cross-border Payments” and it estimates that out of the $24 trillion in wholesale payments, the move across borders every year banks are getting more than $120 billion in total costs which excludes potential hidden costs that are trapped in liquidity and delayed settlements.

Oliver Wyman and JPMorgan suggest a new model for the ideal MCBDC which considers a process from minting and redeeming of CBDCs to FX conversion and settlement also citing many other opportunities for players in the correspondent banking who could be disrupted in a full-scale CBDC rollout.

One of the JPMorgan Executives Mary Callahan Erdoes, says that the clients see Bitcoin as an asset class and demand crypto services more and more. While being skeptical about offering BTC investment options to the clients, the American investment bank JPMorgan Chase & Co admitted that the demand for the asset class increased dramatically.