As cryptocurrencies decline in popularity, other sectors such as the film industry, digital identification and even smartphones are slowly advancing towards the adoption of technology. Banking has long been touted as an area that can take full advantage of the implementation of blockchain technology, with numerous financial institutions actively meditating on the idea. Jumping the bandwagon, the Spanish banking giant BBVA (Banco Bilbao Vizcaya Argentaria) became the the first banking institution in the world to issue loans using the technology blockgerin distributed ledger.
BBVA has already completed a successful pilot project by issuing a $ 91 million corporate loan to the Spanish IT and defense systems company Indra by completing the entire process on two blockchains. BBVA claims that the blockchain has reduced the time of negotiating and issuing loans from several days to just a few hours, and can greatly reduce the friction in loans.
"Blockchain can offer clear advantages for all parts of the business loan market in terms of efficiency, transparency and security. another strong example of how disruptive technology can be used to add value to financial services, something that is fundamental to our strategy "said BBVA chief Carlos Torres Vila.
BBVA completed the entire loan issue procedure on a mutually distributed ledger and used a private blockchain during the negotiation and negotiation process of the agreements, which means that the terms of the agreement were simultaneously recorded and updated on a reciprocal blockchain. Once a mutual agreement was reached, the final contract was recorded on a public Ethereum blockchain, a standard process for preserving an unchanging record.
The company already plans a number of other blockchain-based loan projects and is already working on integrating blockchain technology into its systems to facilitate international payments, international trade and foreign currencies.