Blockchain ‘Is Immature’, says CEO of BBVA
As per a report published by El Economista, Carlos Torres (CEO of BBVA), a famous Spanish bank noted that Blockchain technology is immature and has significant challenges facing it. Banco Bilbao Vizcaya Argentaria (BBVA) was founded in Bilbao in north Spain towards the end of the 19th century.
These views were expressed by him at Spanish Association for Economic Journalism’s event on prospects of Blockchain technology. He further stated that the chief impediments faced by Blockchain are “volatility of underlying currencies” and likely issues with taxation and financial authorities.
Carlos further reiterated that though there are challenges facing Blockchain technology at present, the advantages offered by it are so significant that “when it is mature, and regulators are ready,” his bank would want to access the tools crucial for application of Blockchain for relevant products such as syndicated loans. The potential that this technology presents requires sufficient, unrestricted but supervised space for the development of the technology.
As per a report by Economipedia, it was the second largest Spanish bank as per its assets and capitalization. In the month of April, BBVA issues a loan using Blockchain technology and in the process became the first global bank to do so. The entire process for the loan, including negotiations and signing, of 75 million Euros, was done on a distributed ledger.
By using Blockchain technology to issue the loan the entire process was cut down to hours as compared to many days it used to take earlier. At that time, Carlos Torres said that BBVA had “several more transactions in the immediate pipeline” and in collaboration with a Spanish Telecom firm, Indra, would be launching a pilot program. Indra had described itself as “at the vanguard” of Blockchain applications.