Bank of Spain Governor Says Cryptocurrencies Presents More Risks than Benefits

Bank of Spain Governor Says Cryptocurrencies Presents More Risks than Benefits

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May 26, 2018 by Henrik Bliss
1610
  The Spanish central bank governor, Luis María Linde, has warned that cryptocurrencies poses a greater risk than its benefits. Speaking at a meeting of leaders of the financial sector organized by Deloitte, Linde said cryptocurrencies are spurious novelties that do not provide significant improvements and that should be tackled as soon as possible,according to
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The Spanish central bank governor, Luis María Linde, has warned that cryptocurrencies poses a greater risk than its benefits.

Speaking at a meeting of leaders of the financial sector organized by Deloitte, Linde said cryptocurrencies are spurious novelties that do not provide significant improvements and that should be tackled as soon as possible,according to a local news report.

“[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,” said Linde.

In regards to blockchain, Linde believes the technology “offers interesting possibilities,” but is yet “not quite mature”. He also warned that the current global move for a digital economy comes with risks and challenges.

“The move to a more digital economy is accompanied by greater cyber threats and it is necessary to develop new measures to protect processes, assets and customer data,” Linde said.

Cryptocurrencies are currently not regulated in Spain and are not considered as legal currencies since they are not issued by the government’s monetary authority. However, they may be considered as digital goods and its transactions may be governed by the rules of barter contained in the Civil Code.

Last month, the Spainish tax authorities, the Agencia Estatal de Administración Tributaria (AEAT), requested the names and transaction data of cryptocurrency investors from over 60 financial institutions in an effort to crack down on online tax evasion and money laundering via cryptocurrencies.

 


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