French Banking giant BNP Paribas is reportedly looking into how Bitcoin’s blockchain technology can improve its trading operations.
The bank, which ranks as one of the world’s ten largest by assets, would join a growing list of roughly a dozen financial services firms exploring the technology. Bitcoin’s distributed ledger system can potentially power the decentralized transfer, validation and settlement of fiat currencies and securities, much the same as it does for its bitcoin currency.
A spokeswoman for BNP Paribas reportedly told the International Business Times UK:
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“We are looking at blockchain technology and how it can be applied to post trade processes to make things faster and potentially cheaper but it’s all very much projects and it’s all in testing. It’s nothing live.”
She reportedly said that the bank is currently performing beta testing with one of the bank’s currency funds in Paris, and plans on making an announcement about its work in the near future.
The report comes not long after the bank’s securities magazine, Quintessence, asserted that blockchains will either destroy or rebuild securities services. The report, authored by Johann Palychata, envisioned various scenarios for the blockchain in securities settlement. The industry can face “total disruption”, or at least be forced to integrate with the blockchain in the post-trade ecosystem, he argued.