"While J.P. Morgan's Jamie Dimon has bashed bitcoin as a "fraud," the bank chief and his managers have consistently said blockchain and regulated digital currencies held promise."
They are only doing so because it saves them a ton of money.
They are only doing so because it saves them a ton of money.
This is less about cost savings and more about lock-in and liability. Customers can move their money around by wire or ACH with anyone. They can only do it with JPM coin through JPMorgan.
With such treasury services, moreover, fraud is a big cost centre. A cryptocurrency might be a good way to shift liability for unwanted transactions away from the bank and onto customers.
"The blockchain potential in financial services is huge, and has several applications which span across payments, capital markets, trade services, investment and wealth management, securities and commodities exchanges.
Blockchain technology can be considered as one of the main drivers to achieve a substantial cost saving.
According to a Santander FinTech study, distributed ledger technology could reduce financial services infrastructure cost between US$15 billion and $20 billion per annum by 2022, providing the possibility to decommission legacy systems and infrastructure and significantly reduce IT costs."
https://www.pwc.com/m1/en/media-centre/articles/blockchain-n...
https://www.wsj.com/articles/the-cost-cutting-potential-of-b...
https://www.businessinsider.com/heres-how-banks-can-save-big...
https://www.globalcustodian.com/settlements-costs-fall-27-bi...
https://www.ft.com/content/b6171016-171f-11e8-9e9c-25c814761...