The French government last week announced its plans to make way for using blockchain technology for trading unlisted securities, Reuters reported.
The announcement comes as the government is adopting new rules to position Paris as the hub for financial innovation. With the new rules, banks and fintech companies would be able to establish blockchain-based platforms which would facilitate the instant trading of unlisted securities, without the need for middlemen.
Finance Minister Bruno Le Maire made the announcement on Friday. He said:
“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.”
According to The Local, the decree should come into effect in July and would include shares in mutual and hedge funds, negotiable debt securities, and unlisted stocks and bonds.
Le Maire believes that becoming the first country in the common currency area to authorize blockchain trading will help boost the attractiveness of Paris for fintech startups and encourage innovation.
