Spanish BBVA Provided Loan Using Blockchain Technology
Banco Bilboa Vizcaya Argentaria (BBVA) was the first global bank to provide loans using blockchain technology.
According to a report in the Financial Times on April 25, Banco Bilboa Vizcaya Argentaria (BBVA) was the first global bank to provide loans using blockchain technology.
The Spanish multinational bank said that it did all of this loan process on a decentralized (distributed) notebook. With the use of the blockchain, the bank reduced the negotiation process of 75 million loan Euros from days to hours.
BBVA regarded this process as a significant advance in the use of decentralized notebook technology. BBVA’s CEO, Carlos Torres Vila, said that the bank should do more operations with this technology and announced that they will launch a pilot program with Indra, a Spanish telecommunications company that recognizes itself as a pioneer in block-chain technology.
Vila stated that institutional loans are more complex than consumer loans and that the use of block-chain technology is more attractive in sectors where larger masses are to be reached. Vila added: “Block-chain technology provides clear advantages in terms of transparency and security for all parties in the corporate credit market. We have shown everyone how this revolutionary technology will modernize financial services.”
In the pilot project of BBVA, a special blockchain will be used to negotiate and complete the loan process, and these operations will then be recorded in Ethereum’s public blockchain. The bank also develops various block-chain applications for international operations, trading, lending and foreign exchange transactions.