Friday, March 29, 2024
HomeLaw & PoliticsGovernor of the Bank of Spain issues warning against traditional banking's exposure...

Governor of the Bank of Spain issues warning against traditional banking’s exposure to cryptocurrency assets

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:

Jeewan Singh
Jeewan Singh
Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3 × 1 =

- Advertisment -

Most Popular