The former vice president of JPMorgan Chase’s North American Investment Banking department Pang Huadong, in an interview with the China Economic Times, has shared his ideas regarding the role of blockchain in the global financial system.
When you witness the collapse of a system which you trust, you start searching for potential problems and enhancements for the next one. Pang did exactly this between now and the 2008 financial crisis. At the moment, he thinks that blockchain can actually help the world to avoid the next big collapse.
He believes that due to the decentralized nature of blockchain, where everyone can reach records, intermediaries will be reduced and trust will be built easier.
Replacing an existing and extremely lucrative system is difficult. Pang thinks that we are in the very beginning of the blockchain era. It will develop, evolve and transform. He sees that potential of blockchain developments are limitless.
It seems that Morgan Stanley is also agreeing with Pang’s ideas. According to a report published at the beginning of May, the Bank underlined that central banks can use cryptocurrencies to lower the potential damages from a financial crisis.