One of the popular vehicle distributors in the world has used the blockchain technology to obtain a loan of $170 million. The deal was struck with Banco Bilboa Vizcaya Argentaria’s (BBVA), a Spanish bank, and finalized with the bank’s blockchain platform.
The success of the transaction places Porshe as the first company that is not Spanish owned to take a loan from BBVA by the use of a blockchain platform. It is believed that the blockchain technology will make the process of obtaining loans more transparent and efficient in the financial sector.
The Blockchain Makes Borrowing Of Funds Faster And Simpler
According to Innovation Enterprise, the successful $170 million loan deal between Porshe and BBVA has become widespread and another interesting part of the news is that blockchain was used to make it possible. Dominik Paschinger, a branch manager of the Belgium based International Motor Vehicle Manufacturer And Distributors Corporate Finance Wing said:
“With digitisation being an integral part of Porsche Holding’s Strategy 2025, the goal is to advance in all fields of activity. We think that the blockchain technology has great potential and are therefore very excited to being able to explore the technological capabilities together with BBVA.”
BBVA, on the other hand, has emphasized the advantages of blockchain technology. The Spanish financial organization stated that clients stand to enjoy decreased operational risk, greater immutability and increased traceability during the process of borrowing money which is an improvement from what previous traditional practices had to offer. The bank further said that the increased automation of the process would bring about quicker access to funds for clients more than before.
As BBVA put it:
“The use of blockchain for the arrangement of this facility has demonstrated the extent to which new technologies can provide a leap in efficiency in financial markets.”
Frank Hoefnagels, the person heading BBVA CIB in Germany laid emphasis on the possibilities that abound in the use of blockchain technology to enhance the overall experience of clients. He further expressed his satisfaction in the collaboration between Porshe and BBVA.
Porshe to Go Deeper Into Blockchain Technology
Porshe has in the past shown interest towards distributed ledger technology with the desire to make it a more part of its business. It was reported in March that Porshe would be working together with XAIN, a German startup, to introduce data management innovation into its cars.
A press release further stated that in a bid to make the overall experience of drivers more improved, the two firms would be using the DLT technology to influence the areas of data logging, the use of an application to lock and unlock cars and temporary access authorizations.
The distributed ledger technology implications are yet to be completely understood due to the newness of the technology. Some people are of the opinion that the blockchain has the potential to disrupt industries on a global scale. Other than available cryptocurrencies like Bitcoin, land registry and supply management include early blockchain applications still under development.