Pang Huadong, former Vice President of J.P. Morgan Chase, an American multinational investment bank and financial services provider believes that blockchain technology “may be the key to avoiding the next global financial crisis”. This bold statement was made out of experience, as Huadong claims to have witnessed the downfall of the firm during the 2008 financial crisis.
“When I started working at JPMorgan in 2007, 13 people managed more than $40 billion[in assets]…. when the 2008 financial crisis was at its worst, the average daily loss was $300 million. Only little by little did I realize that blockchain technology could be the key to avoiding the next global financial crisis.”
He said that the technology can be used to build trust mechanism at very low costs.
Huadong continued by saying that “while the technology is still at a very early stage”, its perspectives for growth are boundless. Pang Huadong considers that the core of blockchain’s breakthrough, more specifically, its property of developing decentralized and accountable systems can drastically mitigate global financial crises risks and “establish confidence-building mechanisms at the lowest cost.”
While the Chinese government’s stance on decentralized cryptocurrencies continues to be tough, the blockchain technology has been increasingly popular among leaders in politics, the academic sector, and the financial world. Moreover, even the Chinese president, Xi Jinping, has publicly applauded blockchain technology’s potential.
Interestingly, China’s President Xi Jinping had openly praised blockchain technology in May, saying that it was an example of new generation technologies delivering “breakthroughs”.
Also, on July 16th, the assistant director of China’s Ministry of Information Technology called on China to “join forces” to encourage blockchain as a central technology within the new digital financial age and pleaded for alleviating institutional bottlenecks in optimizing the conditions for its successful integration.