Blockchain is the key to avoiding the next financial crisis

Pang Huadong, former vice president of JPMorgan Chase in North America, is currently an adviser to the Asiatic Blockchain Institute. He told China Economic Times that, in his opinion, blockchain technology is the key to restoring confidence in the global economic system.

Pang Huadong occupied position within giant JPMorgan Chase during the 2008 global economic crisis.

"When I started working in JPMorgan in 2007, 13 people managed financial assets worth over $ 40 billion. In 2008, during the financial crisis, average daily losses were 300 million dollars. Then I understand that blockchain technology can be the key to avoiding the next global financial crisis. "

Although technology is at an early stage, its prospects for the future are unlimited.

The essential aspect is its ability to create systems without intermediaries and transparency. These can reduce global financial risks and establish "low cost confidence mechanisms".

Pang Huadong's position on blockchain technology is the key to avoiding a new financial crisis

It seems to be gradually adopted by China, the Chinese government gradually integrates it into the political, academic and financial sectors.

Last week, the Chinese Science and Technology Ministry reported that it would lead an international study group. It will be channeled on the theme of Internet of Things (IoT) and blockchain technology.

The IT Ministry also proposed the adoption of laws to facilitate innovation in this area and optimize integration.

The city of Nanjing, capital of Jiangsu Province, announced it has launched a blockbill investment fund worth 10 billion yuan (about 1.48 billion dollars).

The announcement was made at the Industrial Public Chain Summit (IPCS). There, both the Deputy Secretary of the Chinese Communist Party and representatives of governmental research companies and organizations participated there.

The People's Bank of China (PBoC) registered several patents last month for a blockchain based system to check checks and a digital wallet.