Cryptocurrencies ‘Pose More Risks Than Benefits’ According To Bank Of Spain

The head governor of Spain’s central bank is a strong believer in blockchain technology. However, when asked about cryptocurrencies, he is far more uneasy on this topic. The governor of Banco de Espana, Luis Maria Linde, recently discussed cryptocurrencies in a speech organizing by the auditing giant Deloitte.

In the speech, Linde said that cryptocurrencies “present more risks than benefits”. In that way, he believes that the blockchain technology may be the only one to improve efficiency and reduce costs.

According to Linde:

“[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.”

He also referred to crypto tokens as “the spurious novelties that do not provide significant improvements and should be tackled as soon as possible” during his speech.

The blockchain technology, on the other hand, offers many “interesting possibilities” and has a massive potential for reducing costs.
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However, this technology is “still not quite mature” according to him.

The governor of Banco de Espana also argued that potential digitization in the financial sector can signify “great opportunities” and increase the efficiency of financial services while meeting users’ demand. All if the technologies are “well-used and managed” according to him.

He also warned that “the move to a more digital economy is accompanied by greater cyber threats and it is necessary to develop new measures and protect the processes, assets and the customer data.”

Cryptocurrencies are illegal in Spain – and some government officials even link the technology to organized crime. From all this, it appears that they will remain like this in the coming months.