The President of the Central Bank of Spain: «Cryptocurrencies are more risks than benefits»

According to the President of the Bank of Spain, Luis Linde (Luis Maria Linde), cryptocurrencies are more harm than good. He declared on may 25. The head of the Central Bank noted that the blockchain can improve efficiency and reduce costs of the financial sector.

The head of the Bank of Spain made this statement at the 25th meeting of representatives of the financial sector, organized by Deloitte and ABC Valuation Society. Linda paid much attention to the drawbacks of the cryptocurrency that prevent and hinder their widespread.

«In my opinion, existing uses of cryptocurrencies carry more risks than benefits: they are rarely recognized as a means of payment, are suffering from extreme volatility, carry numerous operational vulnerabilities and are linked to fraudulent or illegal activity,» said

Linde’s position is quite clear – most of the major regulators of its share. However, not all Spanish financial institutions seem to agree with him. For example, recently it became known that the stock exchange regulator of Spain approved
investment funds for cryptocurrencies, noting that they fall under existing laws before the European Union will introduce a common regulation for all member countries.

However, the overall position of Central banks in respect of crypto-currencies remains quite uncertain, and sometimes is prohibitive. For example, recently, the Central Bank of India has issued an ultimatum
all banks in the country, demanding to stop servicing the accounts of crypto-currency companies, and this decision is temporarily supported
The country’s Supreme court. At least until the final hearing on this issue, which will be held
in July of this year, the decision will remain in force.

Despite the fact that many of the regulators took a defensive stance on the issue of cryptocurrencies, the technology of the blockchain is quite happy with them. Even Linde himself noted that technology provides to financial institutions a great opportunity.

President of the Central Bank of Spain believes that regulators worldwide should focus on the application of the benefits of the blockchain in the financial sector, while seeking to contain risks of the new technology, at a reasonable level. However, he also warned that people should not confuse innovations that can improve the efficiency of the banking sector, for example, artificial intelligence or big data, other technologies, which carry high risks, keeping in mind the cryptocurrency.

The President of the Bank of Spain urged the authorities around the world to carry out internal transformation processes and to allocate adequate resources for monitoring and analysis of new technologies in the financial sector.

Adoption of the blockchain

Spain is not the only country, which closely follows the development of the technology of the blockchain. Switzerland is another country seeking to use the benefits of new technology. The country has already formed a task force, called the «Blockchain Taskforce», headed by the Ministers of Finance, economy and education, which is charged with the task of examining the current industry status of the blockchain, as well as ICO.

China is another country that has demonstrated its interest in the technology of the blockchain, despite the fact that she continues to wage war against the cryptocurrency, and ICO. The government has already announced plans for the integration of technology into the different sectors of administration, and recently it became known that the Chinese universities unite
for creating decentralized Autonomous organizations on the basis of the blockchain.

In addition, in early spring it became known about plans of the government for the development
standards for the blockchain, and the Chinese media are increasingly publishing articles related to the benefits of technology.

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