JPMorgan Chase, an American financial holding company, plans to add a money transfer function to its blockchain project Interbank Information Network (IIN). Expansion of the IIN platform functionality is aimed at fighting competitors – TransferWise and Ripple payment systems, CoinDesk reports.
Currently, 220 banks use the blockchain IIN. With its help, employees of financial organizations eliminate the problems connected with the implementation of interbank money transfers. However, the head of the clearing department of JPMorgan, John Hunter, said that members of the blockchain platform want access to additional functions for processing settlements on trades.
JPMorgan employees have already integrated an option of the real-time verification of a transaction recipient into the Interbank Information Network. Due to this, banks will be able to check the data about participants of remittances online, which will reduce the likelihood of transactions cancellation because of incorrect information. Hunter said that companies now use an operating system developed in the 80s or 90s. The software is outdated, so from 5% to 20% of payments do not pass.
The money transfer system in IIN will start working by the third quarter of 2019. It will allow you to perform both national and international transactions. The Interbank Information Network operates on the basis of the Quorum network, developed on the basis of the Ethereum (ETH) blockchain.
In February 2019, representatives of JPMorgan announced plans to issue its own virtual currency JPM Coin. In addition, in the third quarter of this year, the company plans to launch a test platform to create and implement applications in the Quorum blockchain.
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