JPMorgan Builds Blockchain System For Siemens’ Payments

It’s been just revealed that the US banking giant JPMorgan Chase teamed up with Siemens to build a blockchain system for the German industrial group’s payments via an original app.

This highlights the apps that banks are trying to find for blockchain.

It’s been revealed that Siemens stated that improved automation is required to process the massive number of payments that 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.”

This is what Heiko Nix, head of cash management and payments at Siemens, told the Financial Times.

He continued and said the following:

“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 used to transfer money automatically between Siemes’ own accounts, according to the notes coming from Financial Times.

This is only used for the US dollars at the moment but there are also plans to allow euro transfers in 2022. The companies declined to comment upon the issue at the moment, according to the notes coming from the same article.

Back in November, it’s been revealed that banking giant JPMorgan said that Ethereum (ETH) is a better bet than Bitcoin (BTC) in this market cycle.

Business Insider reported that analysts from JPMorgan say the Federal Reserve’s plans to raise interest rates could spell trouble for Bitcoin.

The online publication the Daily Hodl noted that the Bank of England said that interest rates would have to rise over the coming months. “The Fed reportedly will begin tapering its $120 billion per month spending on bond purchases,” the notes say.