- JPMorgan Chase bank, partnered with German industrial group Siemens to develop a blockchain-based payment system.
- The system will be used to automatically transfer money between Siemens’ own accounts.
- The application will be aimed at automating the various actions required in the registration and verification of payments.
The irruption of cryptocurrencies not only meant a change in the way of seeing the economy, it also changed the landscape in various business aspects such as data transmission. And it is that one can use the technology that makes up digital assets without going through them. That’s what two giants are working on Siemens Y JPMorgan.
The Wall Street bank has signed a union with the German industrial group, which operates in four very important sectors: industrial, energy, health and infrastructure to develop a blockchain-based payment system.
Transfer tracking
Financial times reported that this innovative platform will be used, firstly, to transfer money automatically between your own Siemens accounts. At the moment only transactions will be carried out in US dollars, although it is expected that during 2022 transactions in euros will also be implemented.
JPMorgan’s blockchain, Onyx, will allow you to eliminate certain manual actions such as registration and payment verification, for example. Siemens is the US bank’s first major customer of this service. HSBC and Wells Fargo also signed similar agreements a few days ago where Wells Fargo will be able to make use of FX Everywhere, HSBC’s blockchain-based solution for the cross-border payment settlement process.
“If business were to stay the same as it is now, I would say we are fine with our cash setup. But with blockchain we will be able to automate a bit and maybe reduce costs and cash allocation“said Heiko Nix, Siemens head of cash and payments management.
Blockchain revolutionizing the traditional financial system
Heiko Nix pointed out that the reason for adopting this system is not because of cost reduction but because of the great change they have seen due to emerging digital business models.
To process a greater number of transactions, having a good automatic system will be decisive and that is what the German company is looking for through the JPMorgan blockchain.
For its part, the US bank was very satisfied with this alliance, which they assure that it will be productive for both parties. Siemens wants to be well prepared for the future and JPMorgan provides you with a secure platform.
“The infrastructure, developed with Siemens by JPMorgan’s blockchain unit Onyx, takes programmable payments beyond current uses such as direct debits and standing orders. If you want more flexible rules or flexible triggers, that’s where the current infrastructure falls short “acknowledged Naveen Mallela, global head of currency systems at Onyx.
Having been a huge critic of Bitcoin and all the technology that surrounds it, JPMorgan has given up on the leading cryptocurrency. The bank already offers BTC funds and has ensured that many of its investors are substituting gold for digital gold. In turn, its projection indicates that its value will be above $ 150,000.
Siemens will take advantage of the new technology and add it to its systems to reap the full benefits. Next year it will continue its expansion and will most likely encourage other power companies to follow the same path.
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