Blockchain Can Prevent New Global Financial Crisis
July 24, 2018
Ex-vice president of the American bank JPMorgan Chase Pang Huadong believes blockchain can turn to be the key factor to avoid new world financial crisis.
Pang worked for JPMorgan Chase during the last financial crisis of 2008. In the interview to China Economic Times he told, the events 10 years ago made him think that the blockchain technology can form the basis for transparency and credibility in the world economic system.
“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”, he said.
Pang added that despite blockchain being at the early stage of its development the technology has got unlimited potential. As he sees it, the primary advantage of blockchain is the capability to create transparent systems directly without third parties which may reduce financial risks and establish full trust among all system members at minimal cost.