The State Bank of India (SBI), one of India’s biggest banks, has integrated the blockchain technology of JPMorgan, a major US bank, to foster cheaper and faster payments across borders.
Solution for Cross-Border Payments
As reported by the Economic Times, SBI is the first bank of India to join JPMorgan’s blockchain-powered payment network. The customers of the State Bank of India would be able to enjoy cheap and fast payments after blockchain’s incorporation into the bank’s normal payment operations. The transactions across borders normally take up to two weeks, but the new system would reduce time to just a few hours.
JPMorgan has developed a payment network that is based on a peer-to-peer framework and has made the whole procedure risk-free. Many banking institutions already have agreed to sign up with JPMorgan’s blockchain payment service, Liink. According to the report, almost one hundred banks have registered with the Liink network of the US bank. What’s more, 78 countries are also ready to join the network. Acceptance from all over the world would make it a universal cross-border payment system empowered by blockchain technology. For instance, the Overseas Chinese Banking Corporation (OCBC) also gave a green signal to JPMorgan’s blockchain initiative.
The report also revealed that many other banks also have plans to go for Liink, but the integration has not yet completed. Venkat Nageswar, Deputy Managing Director at the State Bank of India, explained that the bank has been working on digital transformation and would employ new technologies in banking operations.
In 2019, the US bank rolled its stablecoin project called “JPM coin.” Furthermore, it started a trial of the project on users in June 2019.
India, however, has a very strict attitude towards cryptocurrency as it may ban cryptocurrency usage in the country. Last year, the Reserve Bank of India (RBI) banned cryptocurrency in the region, but the ban was lifted by the Supreme Court of India when crypto inspired people filed in favour of crypto. Unofficial news recently claimed that lawmakers are going to introduce a legal draft that would ban crypto assets in India.
Similarly, the US is very lazy in regulating crypto assets. Still, the lawmakers have not reached a single point in launching a comprehensive regulatory sandbox.