The governor of the Bank of Spain has come out in favor of the possibilities of blockchain, but against the risks of cryptocurrencies, local news outlet Europe Press Financial reports Wednesday, May 23.
Banco de Espana governor Luis Maria Linde discussed cryptocurrencies during a recent speech organized by auditing firm Deloitte, saying that they “present more risks than benefits.” That being said, Linde believes that blockchain technology in general may improve efficiency and reduce costs, according to a local news report.
In his speech, Linde stated:
“[Cryptocurrencies] have low acceptance as a means of payment, suffer extreme volatility, present multiple operational vulnerabilities and have been related to fraudulent or illicit activities in many cases.”
Throughout his speech, he cited Crypto tokens as, “those spurious novelties that do not provide notable improvements and that should be tackled as quickly as possible.”
“Blockchain Technology offers interesting possibilities and has the potential to minimize cost. Although he indicated that the technology is “still not quite mature.”
More Broadly, Luis Maria Linde claimed that digitization in the financial sector could mean “greater opportunity” to enhance the efficiency of financial services and meet client’s demand, provided the technologies are “well-used and managed.”
He further suggested:
“Greater cyber threats accompany the move to a more digital economy, and it is important to develop new measures to protect processes, assets and customer data.”
In Spain, bitcoin and other digital currencies are not considered as legal tender. The nation’s finance ministry addressed bitcoin and other digital currencies in an official bulletin published in March. At the time government authorities especially tried to link technology to organized crime, hence calling for increased supervision.
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