According to the China Economic Times, Pang Huadong, the former vice president of North American investment banking at JPMorgan Chase has said that blockchain “may be the key to avoiding the next global financial crisis.”
Currently, Huadong is an honorary academic advisor of the Asian Blockchain Institute. He explained that while working at JPMorgan at the peak of the 2008 financial crisis, the idea of using blockchain as the key technology for establishing transparency and trust in the global economic system occured to him:
“[When I began to work at JPMorgan in 2007,] 13 people managed [the bank’s] $40+ billion [assets]…. when the 2008 financial crisis was at its worst, [the] average daily loss was $300 million. It is only gradually that I understood that blockchain technology may be the key to avoiding the next global financial crisis.”
Huadong added that the technology is still “at a very early stage,” so its development prospects are “limitless.” He highlighted the key point of the Blockchain technology, such as transparency, that, as Huadong thinks, has the potential to radically reduce global financial risks and “establish trust mechanisms at the lowest cost.”
However, the policy of the Chinese government remains tough on decentralized cryptocurrencies, the idea of application of the blockchain technology seems appealing to political, academic, and financial sector leaders. Even the president of the country Xi Jinping openly praised its potential this spring.
Earlier this month, the official newspaper of China’s Ministry of Science and Technology reported that the country would participate in the international research project focusing on the standardization of Internet of Things (IoT) and blockchain technology.
On July 16, the deputy director of China’s IT Ministry urged the country to “unite” forces to foster blockchain as a “core” technology for the new digital economy, and advocated easing institutional restrictions for optimization of the integration environment.