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One of the world's largest vehicle dealers has just concluded a $ 170 million loan using blockchain technology. Porsche has completed an agreement with the blockchain platform of the Spanish bank Banco Bilboa Vizcaya Argentaria (BBVA).
The news makes Porsche the first non-Spanish company to use the general accounting platform to borrow funds from BBVA. It is believed that the use of blockchain technology in the negotiation and closing of loans will increase efficiency and transparency in the financial sector.
BBVA: Blockchain simplifies and speeds up the process of financing the funds
According to an Innovation Enterprise report, Porsche successfully closed a BBVA loan for $ 170 million using distributed ledger technology. Dominik Paschinger, a branch manager of the international commercial vehicle manufacturer and corporate finance distributor in Belgium, said:
"As digitalisation is an integral part of Porsche Holding's 2025 strategy, the goal is to move forward in all fields of activity: we think that blockchain technology has great potential and we are therefore very excited to be able to explore the technological capabilities together with BBVA . "
Meanwhile, BBVA wanted to highlight the advantages of blockchain technology. The financial institution based in Spain stated that customers would be able to borrow money with greater traceability, reduction of operational risk and greater immutability than previously possible using traditional practices. Automating much of the process, the bank added that customers would be able to borrow money much faster than before.
BBVA continued by declaring:
"The use of the blockchain for the arrangement of this structure has shown to what extent new technologies can provide a leap in efficiency in the financial markets".
The head of BBVA CIB in Germany, Frank Hoefnagels emphasized the potential of distributed ledger technology to improve the overall customer experience. He went on to say he was proud of the fact that Porsche felt the same thing about the bank in terms of embracing technology to improve existing practices.
Porsche continues to explore Blockchain technology
The use of blockchain technology in closing loans is not the first time that Porsche has expressed intrigue on the prospect of introducing distributed registers into their business line. In March of this year, NewsBTC reported the news that the luxury vehicle manufacturer was collaborating with the German startup XAIN to help incorporate the innovation of data management in the cars they produce.
According to a press release at the moment, blocking and unlocking cars through an application, temporary access authorizations and data logging were all areas where the two companies believed that DLT technology could be used to improve overall driver experience.
Being a relatively new technology, the implications of distributed ledger technology are not fully understood at the moment. There are many who believe that blockchain could potentially interrupt almost every sector of the planet. In addition to digital currencies such as Bitcoin, the first blockchain applications under development include supply chain management and cadastre.
Related reading: Crypto markets may be in a route, but the Blockchain labor market is in full swing
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