JPMorgan Chase former VP admits - "Blockchain may be the key to avoiding the next global financial crisis"...

Pang Huadong is the former vice president of North American investment banking at JPMorgan Chase, and is currently serving as an academic adviser of the Asian Blockchain Institute.  His time at JPMorgan included the worst of the most recent crisis in 2008.

Speaking to the China Econmic Times, he says:

"In June 2007, after graduating from the Massachusetts Institute of Technology (MIT), I worked in JP Morgan Chase's Fixed Income Self-Management Department. At that time, 13 people managed JP Morgan's more than $40 billion. When the 2008 financial crisis was the worst. The average daily loss is 300 million US dollars. It is only gradually understood that blockchain technology may be the key to avoiding the next world-class financial crisis."

To understand why blockchain could have prevented the crisis, you must first understand what caused the crisis - a system of repackaging and reselling subprime loans often so many times firms could no longer keep track of which loans they were still responsible for.

Blockchain's public ledger feature also acts as a 'chain of custody' record - the ability for a bank to 'lose track' of assets immediately disappears.

Some believe this is why it's so rare to hear someone from the world of banking praising blockchain - once implemented, their ability to cheat the system or simply 'play dumb' when things go wrong becomes greatly diminished.
Author: Adam Lee 
Asia News Desk