JPMorgan has said that blockchain technology has become the foundation for digital currency and fast payments, according to a report by the financial conglomerate.
In the 74-page report, JPMorgan described several projects that have shown ‘real world' application for blockchain in finance and as a result describes 2019 as the year of "the rise of digital money".
In the report, the US investment banking heavyweight elucidates many of the most promising use-cases which it sees as having the potential for wide-spread adoption in the financial sector.
The groundwork is now in place for more mainstream adoption of blockchain technology"
"The groundwork is now in place for more mainstream adoption of blockchain technology at the same time that the foundation is being established for the development of digital currency and fast payments," JPMorgan said.
According to the US investment bank, the adoption of blockchain in banking is only three to five years away. By combining many users or companies on one blockchain, or ledger, transactions can be done in near real-time with certainty, which proponents claim will produce billions of dollars in savings.
Yet most corporate efforts are still in early development or testing.
The trend is expected to continue with central banks and governments exploring how to move money instantly across borders, within minutes and seconds, by utilizing digital currencies on secure blockchains, transforming a global system that currently takes three to five days to complete transactions.
Over the last several years, research and investment in blockchain technology have been taken up by some famous brand names: Facebook with Libra, the Winklevoss brothers' with their Gemini coin, and JPMorgan with the JPM coin.
China is said to have been developing a new digital Yuan and the Bank of England has announced the start of its research into creating a digital currency.
However, JPMorgan cautioned investors about holding Bitcoin and other cryptocurrencies in their investment portfolios.