American technology company Black Cactus Global has scrapped its memorandum of understanding (MoU) with NSB Holdings to buy a majority stake in an Icelandic bank.

The MoU, which was originally signed in January this year, aimed to set up a first fully digital bank based on blockchain technology.

The company said that the decision was taken following a strategic review that concluded that the acquisition would create “numerous competitive risks” that would certainly impact the economic feasibility of such a project.

Black Cactus on its statement noted that the acquisition will distract its focus away from main activity which is the development of Blockchain applications for the efficient management of financial and administrative processes across numerous industries.

Black Cactus Global focuses on blockchain, machine learning, cryptocurrency, and the Internet of Things (IoT).

It collaborates with large organisations and specialised groups on global development and consulting projects in key development areas such as cyber security, fintech, financial services, digital media, and healthcare.