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Head Of Spain’s Central Bank Says Cryptocurrencies Trigger More Risks Than Benefits, But Believes In The Blockchain’s Future

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Bank of Spain governor really believes in blockchain technology, but he doesn’t seem to have too much faith in cryptocurrencies.

Banco de Espana governor Luis Maria Linde addressed the crypto subject during a recent speech that was organized by auditing firm Deloitte.

He stated that cryptos “present more risks than benefits.” On the other hand, Linde believes that blockchain technology, in general, has the ability to enhance efficiency and reduce costs, says 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,” Linde also said during his speech.

Cryptos don’t provide essential improvements, according to Linde

Linde believes that cryptocurrencies do not offer too much improvement, but the blockchain technology provides exciting possibilities, and it also has the potential to reduce costs.

He also believes that the technology is still in its early days and it has to develop much more.

He also said that the digitization of the financial industry could trigger essential opportunities that will definitely increase financial services and meet the demand of users if the technologies are managed efficiently.

He also made sure to warn that “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.”

Crypto status in Spain

It’s important to note that in Spain, Bitcoin and other cryptocurrencies are not considered as legal tender.

Spain’s finance ministry addressed cryptos in an official bulletin that was published this year in March.

The government even used to link the technology to organized crime back then, saying that enhanced supervision is definitely required.