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JPMorgan Chase (JPM) is expanding the use of its blockchain technology to help reduce the number of global payments rejected in error, the Financial Times reported on April 21.
The US financial giant adds new features to its Interbank Information Network (IIN), which is now used by more than 220 banks around the world. The technology was originally designed to help institutions share payment data in real time, reducing processing times.
John Hunter, the global clearing manager at JPM, said he has developed a new feature to instantly check if a payment is directed to a valid bank account. At the present time, transactions may be rejected several days after being sent due to typing errors in the sort codes, account numbers and addresses. He told the FT:
"The direct rates of processing of banks are between the mid-1980s and the mid-1990s. It is this gap – the 5-20% of payments – that must be evaluated by transactions in which we try to to alleviate some of that pain. "
The new feature will be available in the fall and, while the IIN is currently free to use, the report reveals that subscriptions can be introduced over time.
At the same time, JPM is also trying to attract financial technology companies to its network by allowing them to develop applications in a specially created sandbox, where they can access data modeling, file transfer and secure messaging. Hunter told the newspaper that it could eliminate many obstacles for startups, adding, "Developers only need to bring their intelligence."
JPM has launched for the first time the IIN as a pilot project in 2017. As reported Cointelegraph in January, experts from the financial institution believe that the technology will bring benefits to banks and financial systems.
In February, the banking giant announced the launch of its own cryptocurrency, called "JPM Coin", to increase the effectiveness of colonization. Later in the month, CEO Jamie Dimon suggested that the room could evolve to be used by consumers.
Some crypto officials have dismissed JPM Coin, Ripple CEO Brad Garlinghouse, claiming that it "misses out" of crypto.
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