In the latest International Monetary Fund [IMF] Springs Meeting held in Washington DC, officials from various organizations such as JPMorgan and M-Pesa spoke about the effects of DLT and the changing landscape of the financial market in a panel moderated by IMF Chief Christine Lagarde.
The official from JPMorgan stated that the organization’s entry into the field was to provide useful solutions for customers and that a little bit of competition in the field, if beneficial to the users, is always welcome. She added:
“The United States is a mature market but is still less mature when you compare it to markets like China. They have a very mature infrastructure at the point of sale and calculations show that almost 72 percent of the transactions is represented by debit cards or credit cards.”
The JPMorgan official admitted that the focus is still to make it a Peer to Peer network but with the security of a banking structure. She also revealed that distributed ledger technology is great to bolster the KYC-AML [Know Your Customer-Anti Money Laundering] process. According to her:
“The DLT is great to filter bad actors in the banking system. It is a much better process when compared to the earlier ways of making phones calls and confirming with other banks and entities.”
Christine Lagarde further asked the JPMorgan official if the ledger stores the history of transactions, to which she replied that they don’t as it is a collaborative effort involving over 200 banks. The banking giant also claimed that they don’t charge other banks for accessing their ledger.