The Chairman of the Bank of Spain Luis Maria Linde (Luis María Linde), speaking at a meeting with leaders of the financial industry, noted the potential of the blockchain technology and pointed out the risks of the cryptocurrency.
The head of the Central Bank of Spain has called the blockchain technology which “offers an interesting opportunity,” but it is “not very Mature”, he added.
The current global transition to a digital economy requires that regulators balance between encouraging innovation and preventing risks that go beyond the “reasonable limits”, said Linda in her speech.
“The transition to a more digital economy accompanied by an increase in cyber threats and the need to develop new measures to protect their processes, assets and personal data of the clients”, — said the head of the Bank of Spain.
According to him, cryptocurrency is “questionable innovations that do not provide significant improvements and that you need to handle as soon as possible”. Currently cryptocurrencies are “more risks than benefits,” he added.
“They have weak recognition as a means of payment, are suffering from extreme volatility, represent numerous operational vulnerability and in many cases are related to fraudulent or illegal activities,” he criticized Linda cryptocurrencies.
Spanish banks are actively involved in the development and implementation of solutions based on blockchain technology. Previously, Santander confirmed the launch of the international payment service Santander Pay One FX, based on the decision submitted blockchain startup Ripple. In April, BBVA announced the transfer on the blockchain of the process of obtaining loans.