Banks constantly request reports on the cryptocurrency ecosystem. Toribio considers that banks treat Bitcoin like they do with online games or pornography.
Banks are aware of the performance and potential of Bitcoin. However, they decide to ignore its progress and deal with their agendas. That is the opinion of Alberto Toribio, Specialist in Technology and Innovation at the Spanish bank Bankia.
In recent days, Toribio assessed the approaches of financial institutions to Bitcoin and the cryptocurrency ecosystem in general. In his opinion, the people who work in these instances are fully aware of what is happening in the industry.
Banks “know very well what is happening in the ecosystem, but they decide to ignore it,” said the ambassador of Cryptoplaza, a Madrid-based community that focuses on cryptocurrencies and blockchains.
Toribio thinks that banks ignore Bitcoin because it has “a bad press.” In doing so, he specifically referred to the narrative that relates the cryptocurrency that Satoshi Nakamoto created to illicit activities. He even considered that there are people in banking who frown on Bitcoin because they consider it “anti-system”.
In his view, banks deal with Bitcoin just as they do with online games or even pornography. Although they know that these types of companies move a lot of money and could generate high profits, these financial institutions do not provide them with payment services.
Wrong Approach to Cryptocurrencies by Central Banks
In this environment of rejection of cryptocurrencies, a contradiction has emerged that is increasingly gaining strength. According to Toribio, central banks have started “a race towards the creation of digital currencies without having a clear idea of the objective”.
Financial regulators in many countries insist on exploring the possibility of creating their digital versions of national fiat currencies, known as CBDC (central bank digital currencies). This issue has caught the attention of countries like the United States, Canada, Japan, China, and France, among many others.
However, Toribio understands this exploration by central banks as wrong, since it did not arise from a search for innovation. He states that CBDC fever started after Facebook announced its intentions with the Libra project.
The also creator of Coinffeine, a decentralized Spanish exchange, believes that the emergence of Libra made everyone in financial institutions nervous.
Since then, these projects began to proliferate, which he considers not to make much sense. He even compared the case to the unnecessary use of blockchains for marketing rather than for technological innovation.
Toribio considered focusing on digital currencies for payments to be a mistake. According to the specialist, it is very difficult to compete with existing solutions and methods in this area, such as PayPal and Visa. By focusing on it, central banks are missing out on real potentials, such as investments. He said that cryptocurrencies are superior to traditional options in that area.
Finally, the former blockchain project advisor explained that not all the people who make decisions in financial institutions ignore Bitcoin and the rest of cryptocurrencies. In this regard, he stated that “making decisions in this area is more complicated than people think.”
By Willmen Blanco
