Here is the English translation of the news article:
Umar Farooq, the head of JPMorgan’s blockchain division Onyx, said on Monday that public ledgers like Bitcoin and Ethereum are not suitable for high-value transactions, as he believes these public blockchains are still not secure enough to handle the high-value transactions between banks and financial institutions.
Farooq stated that blockchains like Ethereum, which process millions of transactions daily, are still not secure enough for the high-value transactions between banks and financial institutions. The system must allow for trusted transactions between various financial institutions and have some form of accountability.
Previously, the Bank for International Settlements (BIS) proposed creating a “new financial market infrastructure”, a Unified Ledger, which would integrate central bank digital currencies (CBDCs), digital assets, and tokenized bank deposits. Farooq believes this Unified Ledger, which connects central banks and other major financial institution platforms, is indispensable for handling transactions worth millions or billions of dollars.
However, Dante Disparte, the Head of Global Policy and Regulatory Affairs at stablecoin issuer Circle, pointed out at the BIS conference that the geopolitical realities of cross-border payment integration, such as the exclusion of Russian banks from the SWIFT system after the Russia-Ukraine war in 2022, often touch on national security interests, which is regrettable.
The work to build the Unified Ledger is still ongoing, as the BIS announced last month the launch of “Project Agora”, where central banks and major commercial banks from seven countries, including the US, Japan, and South Korea, are collaborating to test the use of tokenized currencies to achieve faster and cheaper cross-border transactions.
