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BBVA Bank Raises Second Loan Through Blockchain

One of the largest banks of Spain, BBVA, has recently announced that it has used blockchain for a loan it just signed with ACS, a civil engineering, and construction firm.

The recent times have seen increasing adoption of the blockchain technology because of the ease and cost-effectiveness it provides while ensuring traceability and transparency. As several fields have begun to embrace the blockchain solution, the banking industry has also followed suit.

This corporate loan by BBVA amounts to £100 million and is a bilateral loan meant for the long haul. A BBVA press release has detailed the specificities of this agreement. The bank has pointed out that the use of blockchain would allow for easily traceable accounting and also ensure that both parties are able to take a look at the contractual status any time. Moreover, the use of this solution has cut down on the processing time immensely and made the process much smoother.

As exciting as this news is, this BBVA move has a predecessor in the first loan it processed with the help of blockchain. Earlier BBVA had announced its loan to Indra, a consultancy and technology firm from Spain itself, using blockchain. Last month, BBVA also finalized an agreement with Repsol, a Spain-based energy company to develop a set of FinTech solutions rooted in Blockchain.

The second-largest among Spanish commercial banks, BBVA offers a wide bouquet of retail and corporate services and is a rather influential firm in the South American region. This key player in the Spanish banking scene is not the only one dabbling in blockchain. Banco Santander, another banking group in the country, has also began to
apply blockchain solutions, especially in instantaneous monetary transfer systems. The group, which has already launched a Forex service rooted in the Ripple’s technology, has also made use of blockchain for test counting votes cast by investors.

Clearly, banks in Spain are showing greater receptivity to modern technology than other banking groups in different parts of the world. This is indeed promising news for the blockchain industry as its greatly functional but still largely nascent technology finds greater and ever-increasing adoption in major fields such as banking.