BNP Paribas participates in Bitcoin technology research

Following Societe Generale’s research and development into blockchain technology, another banking giant, BNP Paribas, has also announced their involvement in Bitcoin and blockchain technology research. According to some news sources, the banking giant is looking to include Bitcoin in its own money market fund.

The announcement comes as no surprise during a time when banks are being forced to innovate and embrace Bitcoin technology and digital currencies.

Bitcoin has been seen as a threat to traditional banking and financial institutions because it offers a simple, fast, cheap and secure way to transfer money. Banks are trying to keep up with the development of Bitcoin by exploring ways to use the technology to transfer money across continents and between branches.

A BNP Paribas spokesperson recently confirmed that its financial institution is currently involved in testing the basic application of virtual currencies. The bank will announce the progress of the research and development soon.

The spokesperson said: "We are closely monitoring blockchain technology and how it can be applied to transaction processes to make transactions faster and cheaper. However, this is a test project and there is no actual evidence yet."

BNP Paribas analyst Johann Palychata recently wrote an article about the technological advancement of Bitcoin and how it could eliminate the current redundant business in the fintech industry. The article was published in the company's magazine and it was questioned by some in the fintech industry.

Earlier this week, Societe Generale recruited IT developers with expertise in bitcoin, altcoins and blockchain, suggesting that the French bank is studying and developing bitcoin technology to meet growing business needs.