Over 80 banks to join JPMorgan’s blockchain-based payment system

JPMorgan’s Interbank Information Network, a blockchain-based payment system has seen interest from over 80 Japanese banks. Interbank Information Network (IIN) executive director, Daizaburo Sanai said in an interview with Bloomberg.

That’s the highest representation from any single country in the IIN extensive network of banks. Having launched in 2017, today worldwide 365 banks or entities have signed a letter of intent to join JP Morgan’s blockchain-based payment system, including Deutsche Bank, ANZ Bank and Bank of Canada.

Powered by Quorum, a permission-variant of the Ethereum blockchain, developed by JPMorgan, IIN allows peer-to-peer information exchange in a scalable manner.

By using the IIN system, participants can exchange information in real-time which makes it an ideal solution for Japanese Banks.

In 2014, the Financial Action Task Force criticized the Japanese government for inadequately addressing AML issues. It added Japan to its “grey list” of high-risk jurisdictions. Since then Banks in Japan are under pressure to strengthen steps to prevent anti-money laundering and terrorism financing.

Using the system, the banks can speed-up inquiries and collaborate in an effective way to inspect suspicious transactions. Therefore, stop money laundering.