France Opens Its Doors To The Trading Of Unlisted Securities Via Blockchain
And the Prime Minister plans to do a lot more.
France has allowed the trading of unlisted securities on Blockchain, starting last Friday.
Blockchain has suffered highs and lows in terms of legality issues in various countries. France, however, has always been a supporter of this up-and-coming technology. They did seem a bit hesitant in the last two years with only a few steps being taken in this direction; allowing mini-bonds to be issued on blockchain or holding a cabinet meeting on blockchain issues. But 2017 has been a year where Bitcoin has surpassed expectations, and the French Government has decided to adopt this technology.
What Are Unlisted Securities?
Stocks, shares or securities of a company that are not allowed to be traded on an exchange are known as unlisted securities. They are alternatively traded using intermediaries, which requires both time and research. With the help of blockchain, the process will become fast, automated and secure.
Bruno Le Mair, France’s Finance Minister, 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.
France has been slowly working on ways to dethrone London as “Europe’s FinTech Hub”, notably since Brexit. While London has only been testing blockchain to use for digitizing security ownership and aiding small businesses, France has been launching labs and working groups for the sole purpose of promoting blockchain. The government’s recent move further proves that Paris is intent on becoming the focal point for any future financial innovation.
Whether France will succeed in its effort or London will once again emerge as the winner, one thing is clear: blockchain is reaping the benefits in this race.