A contempo report by a Major Usa banking company JP Morgan Chase suggested that current blockchain developments are lying downwards the foundation for digital money, but adoption is still years away.

A report published by JP Morgan on Feb. 21 suggests that the finance industry is moving beyond blockchain technology.

Blockchain in banking withal years away

Per the paper, the background for mainstream adoption of blockchain, fast payments and digital currencies is already in place. Co-ordinate to JP Morgan, the adoption of blockchain in banking is three to 5 years away. Still, the bank as well believes that project's like Facebook's Libra stablecoin calls for a higher degree of centralization:

"For a stablecoin like Libra to succeed, information technology volition probable require short-term liquidity facilities, a source of positive-yielding reserve assets, and less distributed, semi-individual networks."

The report too notes that the cryptocurrency market place is showing signs of maturity such as increasing institutional participation and the introduction of new contracts on regulated exchanges.

Still, the researchers too indicate out that crypto assets keep to show extreme toll volatility and claim that Bitcoin (BTC) has already cleared "intrinsic value but have yet to demonstrate their value for portfolio diversification." The document reads:

"Developments over the past year accept not altered our reservations almost the limited role that cryptocurrencies play in global portfolio diversification or as a hedge instrument."

JP Morgan's relationship with crypto and blockchain

JP Morgan itself is among the banks involved in blockchain and crypto asset development. In June 2022, the institution's head of digital treasury services and blockchain Umar Farooq said that the firm intended to test its JPM Money digital currency with selected clients before the start of the current year.

Before this calendar month, reports suggested that JP Morgan is also considering merging its own blockchain platform with that of a major Ethereum-focused house ConsenSys.