The Bank of Spain’s Governor, Pablo Hernández de Cos, has raised concerns about the risks of introducing cryptocurrencies into the traditional banking system. As part of the II Finance Observatory’s launch, De Cos shows his concerns about these things. This was a meeting to look at the state of the finance and insurance industries.
Besides that, he said that some crypto assets, such as stablecoins, that can be used as a store of value because they are linked to national currencies, have become competitors to banks and other financial institutions.
De Cos also said that one of the worst things that could happen if people started using crypto was that the country would become “cryptoized,” which would make it hard for the government to control the money.
Because of the usage of these techniques, such widespread use would theoretically have an impact on regulators’ ability to implement AML regulations. Spain has been developing a cryptocurrency regulatory framework to prevent individuals from using digital assets for illegal purposes. The country made it necessary for VASPs to register with the authorities last year.
Read more: