US banking giant JPMorgan Chase has partnered with Siemens to develop a blockchain system for the German industrial group’s payments, in what the two companies said was a first-of-its-kind application, according to the Financial Times.
Siemens said the improved automation is needed to process the far greater number of payments it expects due to the growing popularity of payment models like pay per use.
“If the business would stay the same as it is today, I would say we are fine regarding our treasury set-up. We can automate a bit and maybe we reduce costs and cash allocation,” Heiko Nix, head of cash management and payments at Siemens, told the Financial Times. “This is not the reason why we are doing this. The reason is that we are seeing a huge change due to the emerging digital business models, because we will no longer be able to forecast cash, for example.”
The system is being used to transfer money automatically between Siemens’ own accounts. It is currently only used for US dollars, but there are plans to allow euro transfers next year.
In a further sign of banks’ efforts to incorporate blockchain technology into their operations, HSBC and Wells Fargo said last week they had agreed to settle currency trades directly on blockchain.
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
