Multinational investment bank JP Morgan is all set to launch its blockchain-powered payment system in Japan. The network, which is christened as Interbank Information Network (IIN), will see the launch early next year.
The network will address the issuance of data among other bank networks and will make the payment transactions faster. The system will also be supportive to curb money frauds and will function as a major initiative against anti-money laundering (AML) cases.
Growing Vulnerability of Financial Frauds in Japan and Asia
As per Daizaburo Sanai, an Executive Director at JP Morgan, the Japanese are impressed with the faster operation process and efficiency of the IIN network. Reportedly, more than 80 Japanese banks have signed up to deploy this network in their systems to counter the financial frauds.
Japan has been facing the anti-money laundering (AML) issues since the last few years for which the government has consistently been criticized by the Financial Action Task Force (FATF). The financial regulating bodies like the Financial Service Agency have been demanding to address these issues as part of the Know your customers (KYC) activities.
The IIN network is a communication network. It has been developed by JP Morgan’s in-house team, which is powered by Quorum blockchain technology. The Interbank Information Network (IIN) will enable faster payments and more security to the customers. This network was piloted in 2017 and Deutsche Bank was the first one to embrace it. Total of 365 members have been already associated with this network, which includes 60 banks as well.
Unlike other blockchain networks for cross border payments, IIN uses the existing bank infrastructure for its operations. Apart from Deutsche Bank, some of its associates include Societe Generale, China CITIC, and Mizuho.
Recently announced MasterCard and R3 alliance for cross border payment solution would reportedly be utilizing the IINs payment network.