JPMorgan launches blockchain payments system

JPMorgan, while its CEO hasn't been shy about calling bitcoin a "fraud" and those who buy it "stupid", continues to invest in the blockchain technology that underpins it. JPMorgan was a founding member of the Enterprise Ethereum Alliance and has created their own fork of Ethereum, called Quorum, which is designed to work in closed "permissioned" configurations to allow banks to more efficiently communicate. 

This is a trend we're likely to see grow over time: banks are gradually coming to understand how disruptive this technology is to their core business model. Recall the hubris of other incumbents in criticizing disruptive technologies in their industries ("Apple can't do a phone", "Netflix isn't a threat", "search engines aren't news") only to be totally rampaged by them. Banks have been trying to get ahead of "blockchain" by working overtime to engineer it to their benefit, but the core fundamentals working against them are that this technology is decentralizing and disintermediating, and banks are the epitome of centralized intermediaries. 


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