TL; DR breakdown
- SBI is the first bank in India to join the JPMorgan blockchain network for better cross-border payments.
- The blockchain is expected to simplify the processes associated with the traditional system.
The banking industry is undoubtedly an important sector where blockchain technology plays an important role, especially in cross-border transactions. Blockchain simplifies and speeds up the entire process. So State Bank of India (SBI), a public sector banking and Fortune 500 company, is looking to adopt the technology. On Monday, the bank partnered with US-based JPMorgan to join their blockchain network.
SBI takes over JPMorgan Blockchain
As reported by the Economic Times of India, the JPMorgan blockchain network will push the Indian bank to expedite cross-border payments and essentially help customers save more time and money using the traditional option. The bank estimated that the blockchain would cut the time for cross-border payment requests by a few hours, meaning beneficiaries could receive cross-border payments from SBI faster.
According to the development, SBI is the first bank in the country to join the JPMorgan blockchain. Commenting on the partnership, SBI’s deputy general manager said, “We have undergone a significant digital transformation over the past few years and continue to add new technologies to add real value to day-to-day operations,” said Venkat Nageswar, vice general manager – International Banking Group, SBI.
Meanwhile, a JPMorgan spokesperson also mentioned that they want to expand their blockchain network presence in India.
Banks are adopting blockchain
While most banks don’t have a friendly view of cryptocurrencies, they are increasingly interested in using the blockchain, which is the technology behind digital currencies. Recently, Cryptopolitan reported that Deutsche Bank (DB) had also launched the JPMorgan blockchain network to facilitate better cross-border transactions. Some other banks are studying blockchain technology to introduce a digital currency.