France will allow over-the-counter securities blockchain deals and strive to be the main financial center

nAfter the British exit from the EU, many major European countries are trying to attract high-quality financial companies to the local development, hoping to replace London as the main financial center. Although more time and effort are required to achieve this goal, many cities are already undertaking related initiatives. For example, France has announced that it will use blockchain for over-the-counter securities trading and fully embrace new technologies to enhance its competitive advantage.n
nTranslation: Inan
France has been determined to move beyond the United Kingdom as the main center of European finance and its latest move may help it achieve that goal.n
France has always taken a very tough stance on transactions and advertising involving leveraged financial instruments such as CFDs and foreign exchange. But it still wants to be a leading financial center for blockchain, which is clearly a way out of its tradition. In a statement to the media, French Finance Minister Bruno Le Maire commented on the decision to allow blockchain trade:n
n”The use of this new technology will enable financial technology companies and other financial players to develop new ways of trading securities that are faster, cheaper, more transparent and secure.”n
nHe added that the proposed rule would be “another invaluable attraction for Paris as a financial center.”n
If these rules are legally binding, they will enable financial technology companies and banks to build blockchain-based over-the-counter securities exchanges that eliminate intermediaries such as custodian banks and brokerages.n
However, these rules are not expected to have any impact on the listed securities. These securities will continue to be traded financially as usual and will need to be dealt with by clearing houses and custodians as they used to be.n
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British Brexit and the New Round of Financial Arms Racen
One of the reasons why France took this bold move is the “Brexit” incident. After the United Kingdom exited the EU, there was a lot of uncertainty surrounding the financial services provided by the UK to the European continent. This triggered an arms race across Europe’s secondary financial centers. Paris, Dublin, Milan and Frankfurt are competing to attract financial giants to operate in continental Europe.n
However, while these cities are currently working toward this goal, they have a long way to go before they can become the main financial centers to replace London. In any case, given the impact of Brexit, these cities will undoubtedly seek to attract more financial activity. France also decided to use the blockchain for over-the-counter securities trading in order to work in this direction. They apparently are trying to take advantage of the situation right now and are doing what they can to gain a competitive advantage.n

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