The current representative in charge of the Bank of Spain shared some thoughts during the release of the PWC report. The official reinforced her opinion about the side effects of cryptocurrencies on financial equilibrium.
The current representative leading the Central Bank of Spain, Margarita Delgado, thinks that it is unclear whether citizens from Spain who currently invest their funds in Bitcoin and other digital assets are aware of the risks such investments imply. These thoughts got expressed in her speech during the release of the PWC report adhered to the European Banking Union.
The official highlighted the financial regulator’s worries about the consequences of the increasing adoption of digital assets in a country like Spain. According to her, the widespread use of digital currencies represents a serious risk to financial equilibrium in the country, and These activities must get regulated and supervised by a proper entity.
Delgado also reflected on a Finder survey, according to which 12% of adults in Spain have bitcoin or other relevant digital assets.
In this sense, the representative highlighted that it is a requirement for European financial regulators to constantly release statements spotting the risks that this financial activity represents for Spaniards. In her presentation, she assured that bitcoin and digital assets do not fit as an investment, nor as a method of payment or exchange for most retail consumers.
Although the nature of these statements tends to clash with small investors’ stances regarding the Bitcoin market, Margarita Delgado’s approaches are still in parallel with that of the Bank of Spain.
On the other hand, the current governor of the Spanish banking regulator, Pablo Hernández de Cos, also directed his interest to the monitoring, and constant supervision of the active crypto market this last month.
Reports about Bitcoin
The consulting firm PwC, one of the most prominent global consulting firms, released its 9th report called “Banking Union, a climate of change,” where it focused a complete section on the role digital assets are actually playing in the world economy.
The report highlights that bitcoin and other virtual assets “are consolidating themselves as a niche surrounded by profits for the financial sector, despite initial doubt from financial institutions.”
Experts noted increasing interest from traditional financial entities in investing in cryptocurrencies, given their “high profits” and the demand fluctuation among their users, especially young citizens and those with a robust economic system. However, it also reflects on the lack of regulation and risks these activities imply.
The Parliament and the European Commission are approving a law that will rule over digital assets trading in the 27 nations that are part of the EU. The project, named the MICA Law, received the approval of MEPs and went to the next level of debate.
By: Jenson Nuñez
