Former JP Morgan executive who witnessed the 2008 global financial crisis, firsthand, has said that the next storm can be averted with blockchain technology.
Pang Huadong was the vice president of the North American investment banking corporation during the peak of the financial downturn a decade ago and now holds an honorary academic advisory role at the Asian Blockchain Institute.
In a report by China Economic Times, the former executive casts his mind back on exactly what went down at that point in history,
“[When I began to work at JP Morgan 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 might be the key to avoiding the next global financial crisis.”
He further mentioned that even though blockchain is at its early stage and is faced with some problems, the technology could have a big say in improving transparency and trust in existing financial systems because of the “limitless” opportunities which abound.
Blockchain technology could “establish trust mechanisms at the lowest cost,” said Mr. Pang.
Yes To Blockchain. No To Bitcoin
While cryptocurrencies, a product built on blockchain has not been favored by the Chinese government policy, there has been a massive adoption of the parent technology across several industries in the country. Even President XI in a speech this spring hailed blockchain alongside other technologies as “accelerating breakthroughs in its range of applications.”
Today, Coinfomania reported that the G20 nation countries believe that cryptocurrencies do not “pose any global financial stability risk” and now even though that were to happen, blockchain could well be the savior according to Mr. Pang Huadong.