Central Bank of Spain: Blockchain has many possibilities but crypto is too volatile

THE President of the Central Bank of Spain, Luis María Linde, is interested in the benefits that the Blockchain technology could offer to both public and private banks.

However, he is not as enthusiastic when betting on the implementation of cryptocurrencies as a bargaining chip.

It offers interesting possibilities, said the Spanish bank, this Wednesday in a press release from Europe Press Financial. The bank’s governor explained that as a financial ecosystem it was not yet “mature” enough.

He points out that the global movement towards a digital economy requires better regulations that encourage innovation, but without entailing the risks of “reasonable limits”.

His concern was based on: The move to a more digital economy is accompanied by greater cyber-threats and it is necessary to develop new measures to protect the processes, assets and customer data.

Regarding the use of cryptocurrencies, the principal of the entity presumes that they would present more risks than benefits. And he invited the community to these spurious novelties that do not provide significant improvements, should be addressed as soon as possible.

His speech took place at a meeting of leaders of the financial sector organized by Deloitte and other Spanish organizations, where Linde also spared no opinion on cryptocurrencies today: They have low acceptance as a means of payment, suffer extreme volatility, present multiple operational vulnerabilities and in many cases, they have been related to fraudulent or illicit activities.

ECOSYSTEM:

In Spain, bitcoin and other cryptocurrencies are not even considered as legal currencies, however, they can be seen as a digital good and there are no disadvantages at the time that their transactions can be governed by the rules of barter according to the code Spanish civil

In April, the international banking firm BBVA, headquartered in Spain, was the first to make a loan with Blockchain technology. The novel implementation was carried out successfully from negotiation to signing.

In February, one of the legislators for the PP (Popular Party) of Spain reported that progress is being made in terms of legislation to grant tax exemptions to companies that use Blockchain technology in order to promote innovation in the territory.

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