Banking institutions and fintech companies in France can now use blockchain platforms to trade unlisted securities. Instantly following adoption of new rules targeted at improving Paris’ image as a center for financial innovation.
This is according to a statement by the Finance Minister Bruno Le Maire.
With the new laws, there would be no need for middlemen like brokers and custodian banks to facilitate trading of the unlisted securities. However, securities listed on financial exchanges will still need to pass through custodians and clearing houses.
Also Read: Bitpay to process payments on multiple blockchains starting with Bitcoin Cash
Maire said in the statement,
“The use of this new technology will allow fintech firms and other financial actors to develop new ways of trading securities. Likewise that are faster, cheaper, more transparent and safer”.
The new move could promote use of blockchain-based technologies and application in general.
Also Read: Blockchain tech could improves citizen identity, says Reform think tank
Many banks and financial institutions hail blockchain as a technology that would help reduce cost. Thus make transactions faster and more secure. It can also help eliminate data complexities and redundancies while enhancing sharing of the data amongst themselves.
These are a new set of measures Paris aims to use to establish itself as a financial center and attract more business from London after Brexit. Others previously rolled include payroll tax cuts, labor reforms and promises to set up more international schools.