Cryptocurrency

Santander paid and gave the back, but using Ethereum – Breaking News

On previous occasions, we have stated as traditional financial institutions are beginning to use tools with Blockchain, including the use of cryptocurrencies. In this case, we shall give the proof of one of the largest Spanish banks, being Santander, which is experimenting with a new system of using bonuses as the basis of Ethereum. Thursday 12 September, the Spanish bank announced that it conducted a test in which the company used ETHs to represent an issue of debt of $ 20 million as a bonus, resolving with another set of tokens ERC-20, which represents cash in an escrow account. To understand as work this test, imagine asking a question to someone on WhatsApp and wait for them to send a postcard with the answer. That is what that is issuing securities in a chain of blocks while you fix the side effective operation through the analog system it inherited. But Santander, in this analogy, led to both sides of the conversation digitally, and therefore, in the money of any investor or client of the bank was at risk. “It’s an evolutionary step,” said John Whelan, head of investment banking digital bank’s corporate and investment Santander. “There is still no secondary markets, but we are on that road.” Whelan said that the effective symbolic remained “in custody in a contract smart in the chain of blocks public Ethereum, until the issuer has endorsed the transaction and indicated to the chain of blocks that make the delivery versus payment”, at which point the cash and the bonds are exchanged “simultaneously and irrevocably”. Describing the project as a “pilot of real money”, Antonio Torío, head of funds of Santander, said that the transaction was a bonus simple with a maturity of one year, four coupons quarterly, and a standard rate of 1.98 percent. “For Santander, this is actually much more a problem of technological innovation that a financial problem pure. We believe that this is an important first step that will be followed by more complex transactions,” said Thorium. However, when asked if the custodial services of Sandander could contain digital assets complex, as BTC and ETH, Whelan said that this was technically possible, but not the plan of the bank, and adding: “In the bank, we are not interested in the cryptocurrencies directly. It’s the same technology underneath, but we are interested and our clients are interested in us dollars, euros, pounds traditional, and that is our space”. So, if you are using as a reference the ETH to develop the bond at the chain of Ethereum, the unit of currency is still Fiat money. Likewise, it should be noted, as officials said Santander, the important thing in this case is not the financial issue, but the underlying technology, allowing to unify in this way Blockchain, criptos and transactions traditional. To finish, it should be noted that it is the first traditional institution in achieving a bonus cash using Blockchain. The following two tabs change content below. I am a student of economics, interested in innovation and technological development, always faithful to that tomorrow will be a better day.

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