BNP Paribas remains one of the largest financial institutions in the world today. They are also a major proponent of blockchain technology for quite some time now. Surprisingly enough, the company has made an intriguing decision on that front. Paribas will integrate blockchain to their global internal treasury operations. It is one of the first times we see a bank officially implementing distributed ledgers in this regard.
No one can deny the potential of blockchain technology. Various banks around the world have conducted trials and experiments. However, we are still waiting for the first institution to officially embrace the blockchain. BNP Paribas is leading the pack as of right now, thanks to their new announcement. More specifically, they will use DLT for global internal treasury operations. A major step in the right direction for the future of financial technology.
A Major Gamble by BNP Paribas
After multiple different pilot projects, BNP Paribas has finally made its decision. It is good to see institutions explore many different options in this regard, to say the very least. Up until now, banks have all been talking about DLT without much to show for it. Integration with legacy systems has always been one of the main roadblocks to overcome. It seems the French bank has found a way to successfully do so moving forward.
BNP Paribas’ Xavier Toudoire comments as follows:
“Although it is still too early to determine how the technology will evolve and whether it is suitable for large-scale deployment, our pilot has demonstrated the clear strengths of private blockchain and its potential as one of the most effective ways to improve the existing internal processes between different businesses on an international level.”
For an initiative launched ten months ago things are looking very promising right now. There are constraints on cash transfer capabilities for the French bank. Blockchain technology can alleviate these concerns, which will result in a more efficient operation. It remains unclear when the integration is expected to be completed, though. Extending working hours from seven to eleven per day is a major step in the right direction. It will be interesting to see how things play out in this regard.
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