The governor of the central bank of Spain has said cryptocurrencies currently presents “more risks than benefits”. However, he seemed positively impressed by the technology it is built on—Blockchain—and saw promise in it.
Luis Maria Linde speaking at a discussion organised by audit firm Deloitte said blockchain has the potential to improve efficiency and reduce costs, reported a local news portal.
“In my opinion, their current use (of cryptocurrencies) presents more risks than benefits: they 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,” he said.
Linde referred cryptocurrencies and tokens as “those spurious novelties that do not provide significant improvements and that should be tackled as soon as possible.”
According to him, there is an opportunity in the blockchain technology. He said that it “offers interesting possibilities”, but added that it was still “not quite mature”.
Linde, talking broadly about the digitisation of financial sectors, remarked that it would help in increasing the efficiency of financial services if the technology is “well-used and managed.
“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,” he warned.
Spain, like almost all European countries, does not recognise cryptocurrencies as legal tender. A recent official bulletin (in Spanish) published in March sought to link the technology to organized crime, thus calling for increased supervision.
Note: Statements by Luis Maria Linde in the article have been translated from Spanish.