JPMorgan Chase, the multinational investment bank, is one of the pioneers of blockchain research and adoption among the giants of classical banking. Its analysts prepared a thorough review of the most important events, processes and trends the blockchain and cryptocurrency sphere went through in 2019.
Has blockchain entered the financial mainstream?
Despite all rollercoaster rides the crypto marketsэ capitalization suffered from last year, for the analysts of JPMorgan Chase, it was the year of the overwhelming adoption of decentralized technologies, so, the report in particular says:
“2019 will be remembered for the rise of digital money.”
The report mentions both successful (PAX, USDC) and failed (Libra, Petro) attempts to disrupt classical payment and remittance institutions with crypto. All in all, the world is ready for еру private payments. This statement is proved by the global growth in all types of non-cash payments (e-payments, cards, mobile wallets) in Asia.
By the way, blockchain-based systems have yet to overcome numerous challenges on their way to mass adoption. First of all, it is price volatility. As outlined in the report, it is volatility of crypto behemoths, mostly Bitcoin, that makes institutions focus on stablecoins. Also, the huge gap between Bitcoin market capitalization and its intrinsic value yet corrected by the price recovery is another obstacle on its way to investors’ portfolios.
Stablecoins on the march
Stablecoins, both corporate and state-backed (CBDCs) are also in the spotlight of the community and regulatory boards. The market is desperate for their toolkit to provide them with plenty of use-cases.
Stablecoins may potentially reach a wide adoption in the sphere of cross-border remittances and banking settlements. Numerous banking institutions across the world are looking to issue their own stablecoins or use corporate ones.
JPMorgan analysts have named one more serious threat to crypto adoption. It is the implementation of quantum computations into the distributed technologies. They can seriously undermine DLT security and enable dramatic hacks.