Investment banking giant JPMorgan Chase in an apparent change of rhetoric towards crypto is now seeking to patent a system for using distributed ledgers as a way to facilitate and reconcile financial transactions.
To recall, a few months ago, Jamie Dimon had accused Bitcoin of being “a scheme and fraud”. In fact, the chairman and CEO of JPMorgan Chase of the the largest of the big four American banks went on to say that Bitcoin will not be able to survive when it was trading at around $400 in November 2015.
Analysts said that recent bearish trend that the crypto witnessed was partly due to Dimon’s strong repudiation of Bitcoin. But a recent change in tone of the investment bank is in stark contrast of the bank’s initial stance of the global payment system.
Now Morgan Chase says the decentralised digital currency would provide "a unique system for recording transactions and storing data." The ability to replicate that data on the ledge across a public or private distribution network offers another benefit, the filing observes. The company’s filing explains:
"In one embodiment, a method for processing network payments using a distributed ledger may include: (1) a payment originator initiating a payment instruction to a payment beneficiary; (2) a payment originator bank posting and committing the payment instruction to a distributed ledger on a peer-to-peer network; (3) the payment beneficiary bank posting and committing the payment instruction to the distributed ledger on a peer-to-peer network; and (4) the payment originator bank validating and processing the payment through a payment originator bank internal system and debiting an originator account."
In the application, Morgan Chase explains that blockchain could ameliorate upon existing systems by allowing real-time settlement more effectively than is currently available. "For a cross-border payment to be made from a payment organisation to a payment beneficiary, a number of messages must be sent between the banks and clearing houses involved in processing the transaction,” the application accentuates. “This often results in a slow transaction, as there are may be delays in service due to correspondent banking, messaging networks, and clearing intermediaries in the payment flow.”
Meanwhile, as Bitcoin prices continue to climb, reaching nearly $10,000 on Friday, founder and CEO of BKCM LLC, a crypto-focussed digital asset firm Brian Kelly came strongly in favour of the crypto and said "Bitcoin is rallying and can no longer be ignored."