Government of France to Allow the Trading of Unlisted Securities With Blockchain.
France’s Finance Minister Bruno Le Maire unveiled a decree that would allow the trading of non-listed securities using the blockchain technology. The finance minister presented the decree to the Council of Ministers and will enter into force in July next year.
The new law would allow FinTech banks and firms to establish blockchain platforms where non-listed securities can be traded instantly, eliminating intermediaries such as brokers and custodian banks. According to the statement, € 3,000 million in commercial paper, fund shares and other debts can be transferred much more efficiently using distributed accounting technology (DLT). He added that several FinTech companies have already tested the technology and are ready to go.
“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,” Le Maire said .
Le Maire added that becoming the first in Europe to authorize blockchain trade would increase Paris’s appeal for FinTech and encourage innovation.
Earlier this year, the French government created a working group focused on blockchain. The working group was in charge of investigating the blockchain implementations, exploring the benefits of public sector applications and proposing how the government can support its development.
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