In an interview with CNBC, the CEO of JPMorgan’s blockchain company Onyx, Umar Farooq, stated that a significant amount of time was spent minimizing risks associated with transactions related to tokenized foreign exchange and government bonds in Project Guardian, a major blockchain initiative kicked off by the Singapore government.
He asserts that the next stage is to find and implement some sort of identity solutions or KYC solution to secure clients and their money; otherwise, the system would not be extensible. Farooq stated:
“I do think you need some sort of identity solution or know-your-customer solution which verifies who the human being that is interacting is and what they are allowed to do. Because without that, in the longer term, it just doesn’t work”.
Onyx CEO emphasizes on better user protection methods
Onyx CEO added that banks must emphasize user protection when experimenting with digital assets. At the Singapore Fintech Festival 2022 on Wednesday, he said:
“What a bank needs to do from a regulatory point of view and customer’s point of view is that we need to protect our customers. We cannot lose their money”.
Farooq’s comment comes at a time when the crypto industry is suffering from numerous hacks and many crypto investors falling victim in recent months. The most recent attack was on Deribit, losing $28M on its hot wallet and Team-Finance, along with crypto giant FTX’s users being victim of a phishing attack, as TheCoinRise reported. Chainalysis reports that October has been the worst month ever for crypto attacks.
The said project was successfully conducted by JPMorgan, DBS Bank and SBI Digital Asset Holdings. As part of Project Guardian, an industry experiment announced by the Monetary Authority of Singapore(MAS) in May, Farooq and Onyx addressed some of the security and verification challenges. “It was very, very hard,” Farooq said during the panel at SFF2022.