BBVA Endorses a Loan Worth $117M On a Blockchain-Based Technology
The second-largest Spanish bank, BBVA, has endorsed a blockchain contract with a civil engineering company, ACS Group, to provide a 100 Million Euros (equivalent to 117 Million Dollars) bilateral loan, according to a statement on July 19th.
Why BBVA is using Blockchain
According to a statement made by the company, the blockchain loan should enhance their competency and translucence in processing the loans as it allows both bodies involved in the loan agreement to check the process of the loan.
Also, the technology includes automating the negotiation process which helps cut down the time for administering the loan to hours rather than days.
BBVA Endorses a Second Contract
BBVA declared that it has endorsed an additional agreement with a global energy company last month, Repsol, to renew their line of credit which is estimated at 325 Million Euros (equivalent to 377 Million Dollars). Although the bank is using blockchain and DLT in carrying out some of their transactions, the CEO declared in a statement that blockchain is not yet complete as it encounters some challenges, but they want to be ready to apply the technology when it is fit for use and when the government regulators recognize it.