While meaningful impact is still three to five years away, JPMorgan Chase & Co. predicts blockchain will move past cryptocurrencies, according to Bloomberg.
"Blockchain isn't going to reinvent the global payment system, but it will provide marginal improvements," JPMorgan Chair of Global Research Joyce Chang told Bloomberg. "The most meaningful impact will probably be three to five years away and mostly on trade finance."
The demand for blockchain in trade finance is due to the high potential gains in efficiency from digitalization. Developed by JPMorgan and powered by Quorum, the Interbank Information Network is based on the Ethereum blockchain. Today, IIN comprises 157 banks in its network.
Supply chain is another area blockchain is expected to influence. However, blockchain's impact has been halted due to its scalability, integration, cost-efficiency and regulation, Ms. Chang told Bloomberg.
"It's been difficult to get through the regulatory issues," Ms. Chang told Bloomberg. "We need to separate out blockchain from crypto. There's been progress made on blockchain; there are successful use cases."