JP Morgan Chase Admits Mistakes in Trying to Obtain a Patent Related to Blockchain Technology

Last week, the US Patent and Trademark Office reported that JP Morgan Chase had applied for a blockchain-related patent back in October last year. This is very strange for the bank that most criticized bitcoin and cryptocurrency. The product for which the bank receives a patent is called “a system for using distributed ledgers for network payments to calculate and coordinate financial transactions” and is a type of blockchain technology.

JP Morgan Chase is the largest bank in the United States and ranks second in the world by market capitalization. 

Its chairman, Jamie Dimon, has repeatedly publicly expressed his position on decentralized currency, calling it a scam. Dimon stated in an interview with CNBC that the bitcoin market is doomed and that he will fire every employee on his team who starts trading bitcoin. "It's worse than tulip fever and it's not going to end well," Dimon said at the time. In addition, Mr. Dimon called bitcoin investors idiots and predicted that they would lose all their investments. 

This year, Mr. Dimon has revised some of his statements. The bank’s annual report states that cryptocurrency is an extremely disruptive force, constitutes competition and poses risks to the bank’s activities. Such statements indicate a change in the approach of JP Morgan Chase top management in relation to digital assets.

And proof of this is the patent application, information about which was published this week. 

The method proposed by the bank for processing network payments using a distributed ledger may include:

- the payment sender sending a payment instruction to the payee; 

-payment initiator, a bank that conducts and transmits payment instructions to a distributed ledger in a peer-to-peer network; 

- the payee's bank, conducting and transmitting payment instructions to a distributed ledger in a peer-to-peer network; 

- the payment sender's bank, which verifies and processes the payment through the internal system of the payment sender's bank and debits funds from the payment sender's account.

The bank may be trying to reduce the cost of telecommunications services around the world. The money transfer market is a multi-billion dollar market. However, it is not clear how blockchain technology will help a bank in cross-border transactions without having its own cryptocurrency. It is clear that JP Morgan and Mr. Dimon were wrong to criticize cryptocurrency and the technology behind it, since they have now turned to this technology themselves.

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According to https://news.bitcoin.com