The official gave warnings related to the decentralization of Bitcoin. She said the state must protect the least informed investors.
The Secretary of State for the Economic of Spain, Ana de la Cueva, stated about a risk of nonpayment because of users’ lack of protection by traditional payment systems during her participation in the III Fintech Meeting, which took place in February 10, 2021, online.
In this way, the official referred to the inexistence of a centralized guarantee system in Bitcoin, which is a person-to-person system. De la Cueva did not mention that there is no single chance of default by any central issuer.
De la Cueva also highlighted “the absence of a recognizable issuer” in Bitcoin. The consensus rules and design of the incentive system in BTC’s been stopping for 12 years, committing a diverse kind of fraud within the system. Because the code is open, all the rules are verifiable by anyone, transparently, and without the possibility of arbitrary modifications.
Among the risks, the official sent warnings about the adoption of bitcoin, and its growth is a possible financial destabilization of the traditional system. “At the moment, the use [of bitcoin] appears to be tied by limits, but the European Central Bank already warns that a generalization could unleash unexpected effects on the functioning of the monetary system.”
The senator of Nigeria, Sani Musa, shares some similar thoughts and says that “Bitcoin has rendered our currency almost useless.” For him, Satoshi Nakamoto’s currency would be a potential factor causing his national currency’s devaluation.
In her speech, De la Cueva pointed out that cryptocurrencies can serve as a tool to push terrorist activities or/and launder money. “By construction, Bitcoin is anonymous and unreachable; unless the user loses private keys and those keys get in criminal hands.”
There is a record of each transaction on the blockchain. Access to this data is available to anyone without needing to possess the private keys of any user. In most cases, the traceability of Bitcoin has led to the arrest of many suspected criminals. It is also essential to consider that banking entities are not exempt from money laundering or any other criminal behavior.
Bitcoin is a Revolution, And Revolutions Bring Changes
De la Cueva, who led the opening speech, also assured that Bitcoin implies many changes in every environment it sets to live. It is also causing a lot of questions that need immediate answers. In addition to the risks, there are the losses that investors may suffer. “We have to attend to the protection of the most vulnerable or the least informed,” he said.
After the secretary’s presentation, the Meeting had two round tables. One of them centered its efforts on available finance and the new economy, while the other focused on regulatory challenges and their impact on payment means.
The closing speech was at Gonzalo Pérez del Arco’s hands, director of Government Affairs for Southern Europe at American Express.
By: Jenson Nuñez
