The CEO of BBVA, Carlos Torres, warned on Monday that the blockchain technology, on which cryptocurrencies such as bitcoin are based, "is not mature and has significant challenges", according to local media outlet el Economista.
During the event, “Economy and Blockchain. What is going to be the next?” organized by the association of economic journalists, Torres also shared the view that the main obstacle for blockchain technology: the “volatility of underlying currencies” and possible compatibility issues with tax authorities and financial regulators.
However, he believes that "when it [blockchain] is mature and the regulators are ready", BBVA will seek to apply the technology where it is necessary. The bank has already made steps toward testing out the technology for the purpose of “the negotiation and contracting of syndicated loans using blockchain” according to its statement.
Also, in April 2018, BBVA became the first global bank to issue a loan using blockchain technology. The Spanish bank has closed an $87 million (€75ml) corporate loan deal with technology partner Indra.
Banco Bilbao Vizcaya Argentaria (BBVA) is a Spanish bank with almost 200 years of history. In 2017 it became Spain’s second-largest bank after Banco Santander by assets and capitalization.
By Nadya Astam