Spanish bank issues $150 million loan via Ethereum
One of Spain’s major banks, BBVA, has just accomplished a major milestone for both crypto and blockchain industries, issuing a loan to the national electric company using the Ethereum blockchain. At the total amount of $150 million, this was no small test, and in order to make it happen BBVA teamed up with two more major banks – MUFG (Japan), and BNP Paribas (France), both of which have also expressed lots of interest in blockchain technology. For instance, MUFG, the fourth largest bank in the world, is reportedly researching a potential creation and use of their own cryptocurrency, while BNP has been talking about building their own blockchain.
This transaction showed yet again all the advantages of using blockchain technology and crypto for financial organizations throughout the world. According to BBVA, transfer of a loan in a similar amount would take weeks to process through traditional means, while on blockchain it was completed just within a matter of a few hours!
Additionally, using blockchain technology for this transaction also allowed the banks to store signatures and contract items, which were all time-stamped according to the block they’re included in. This means that lenders and borrowers would be able to double check on their terms instantly, saving a ton of paperwork, while also improving security and transparency! This positive example ensures that more and more banks will be testing similar solutions already in the nearest future, as blockchain does appear to be the future of finance, financial experts say.