The government of France has allowed banks and other financial institutions dealing with unlisted securities to trade using blockchain technology. The government has done this in its quest to become a renowned a Fin-Tech destination.
The government of France has allowed banks and other financial institutions dealing with unlisted securities to trade using blockchain technology. The government has done this in its quest to become a renowned a Fin-Tech destination. This change in the law is according to the information obtained from Reuters as communicated by Economic and Finance department of the French government.
The legislative change acknowledges the big role blockchain will play in ensuring trading in securities is done fast without the need for clearing houses. As opposed to the previous system that required many tedious, time-consuming processes as well as costs involved in storage and clearinghouses, the involvement of blockchain technology will make the process fast and less costly.
According to the French finance minister, Bruno Le Miare, this progressive technology will make it possible for fin-tech firms as well as players in the financial sector to invent ways of dealing in securities within a short amount of time, be less costly, transparent as well as secure for those involved.
The change in rules is one of the measures meant to attract more business to France from London after the Brexit referendum that saw the United Kingdom leaving the European Union. The move is meant to make France a major Fin-Tech destination. Moreover, The French government has also promised a tax cut of about $13 billion to make it an attractive trade destination for financial institutions from London.
Through The Central Bank, Banque de France also reported that the test on blockchain technology will mainly pay attention to payment across the border in Single Euro Payment Area, SEPA. In a move that began in the middle of 2016, a consortium of well-known financial institutions such as Societe Generale as well as BNP Paribas, the working towards blockchain technology was seen to take shape among small as well as medium-sized trading units.