Reuters reports that the French government has officially given the green light for trading unlisted securities using Blockchain technology. New rules have been implemented by the government which would allow banks and fintech firms to establish and develop Blockchain platforms for unlisted securities trading. The benefits of this would be the removal of the intermediary men and also make the transaction speeds very fast.
Bruno Le Maire, the minister of finance in France, claims that move is part of a plan to foster Paris as a hub for financial innovation and that it would help boost Paris as one of the world’s financial leaders:
“The use of this new technology will allow fintech firms and other financial actors to develop new ways of trading securities that are faster, cheaper, more transparent and safer.”
Back in May 2017, the French government also subsidised a team to research potential implementations of Blockchain technology and explore its benefits and applications for the public sector.
Another financial centre which is looking into trading unlisted securities is London Stock Exchange Group, which partnered with IBM in July to trial a private platform.