logo
Plus   Neg
Share
Email

BBVA Bank CEO Warns Blockchain Is Immature, With Significant Challenges

bbva-june21-lt.jpg

Carlos Torres Vila, CEO of the Spanish bank Banco Bilbao Vizcaya Argentaria SA or BBVA , warned that blockchain technology is not mature and faces significant challenges, el Economista reported. However, he believes the advantages of blockchain technology are so important to their business.

While speaking at a blockchain technology event organized by Spanish Association of Journalists of Economic Information, Torres expressed his concerns about blockchain's current limitations. According to him, the volatility of underlying currencies and possible compatibility issues with tax and financial regulators are the main challenges for blockchain.

But, when it is mature and regulators are ready, he said his bank would want to have ready tools for the technology's application.

Pointing to blockchain's potential, Torres said there should be adequate, unrestricted, but supervised spaces for developing the technology.

In an earlier interview with CNBC, Torres Vila said that blockchain could have a huge promise for the banking and financial industry, to provide a sufficient way to reduce costs and avoid cases of fraud.

BBVA, which is said to be Spain's second largest bank by assets and capitalization, recently became the first bank in the world to issue Blockchain technology-based corporate loans. The bank partnered with Spanish tech consultancy firm Indra, and issued 75 million euros or $91 million in corporate loans through distributed ledger technology.

BBVA is also developing different blockchain initiatives related to international payments, international trade, and foreign exchange transactions.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT