The Future of Payments in Japan
In a groundbreaking move, JPMorgan’s blockchain-based payment network, the Interbank Information Network (IIN), is gearing up to launch in Japan in early 2020. This initiative promises to revolutionize the way banks conduct payment transactions, making things faster and more secure. According to a report by Cointelegraph Japan on December 10, this network is stored on JPMorgan’s in-house blockchain platform, Quorum, addressing major data-sharing issues between financial institutions.
Japanese Banks Jump on the Blockchain Bandwagon
Bloomberg has revealed that over 80 Japanese banks are eagerly waiting to hop on this blockchain-powered ship. These banks already represent more than 20% of the 365 total global members who have signed up for the IIN since its inception in September 2019. That’s a substantial slice of the pie, making Japan the largest contributor from a single country.
Current Status and Anticipated Launch
Presently, the IIN is up and running with 70 banks across Europe, Asia, and the U.S. However, Japanese banks have yet to join the party. As per Daizaburo Sanai, a JPMorgan executive director, Japanese firms are expected to start integrating with the IIN as early as January 2020.
Why Are Japanese Banks Interested?
One key reason for this surge of interest is the IIN’s promise for enhanced Anti-Money Laundering (AML) measures. The system is designed to make tracking cash recipients “faster and more efficient”, a feature that’s definitely got banks buzzing. Given the increasing scrutiny on financial institutions globally, this capability could be downright lifesaving for compliance officers.
A Quick Glance at IIN’s Journey
The IIN began its journey as a pilot in 2017 and had its first major endorsement when Deutsche Bank, Germany’s largest bank, came aboard in mid-September 2019. This was a significant milestone that solidified IIN’s reputation in the global banking landscape.
JPMorgan: A Leader in Blockchain Adoption
JPMorgan has consistently proven itself as a pioneer in blockchain and crypto-related projects. Notably, it is recognized as the world’s second-largest investment bank after Goldman Sachs. Apart from the IIN initiative, the bank has introduced its own cryptocurrency, JPM Coin, which is set to launch soon. In recent months, they have also announced collaborations intended to enhance cash and collateral transfers.
