The French Government has cleared the way for the use of blockchain technology in the trading of unlisted securities, as it rewrites is rules to stimulate the innovation economy.
Under the new regime, banks and fintech firms will able to cut out the middleman by using distributed ledgers to trade and settle shares in unlisted companies. Trading in listed companies will still have to pass through custodian banks and depositories.
In a statement, Finance Minister Bruno Le Maire says: “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 dusting off its rule books of late in an effort to lure banks away from post-Brexit Britain. The latest revision is squarely aimed at stealing London's crown as a centre for financial innovation, long the envy of continental markets.