Recently, the governor of the Bank of Spain has said that people who trade in cryptocurrencies should be watched. Then, Pablo Hernández talked about his problems in the crypto-market after he made the news.
Hernández points out that many investors don’t understand how cryptos work. Because Spain is one of the most important countries in Europe, people don’t know much about decentralized currencies because they haven’t used them.
Bank of Spain’s governor demands for crypto-monitoring
Pablo Hernández, the governor of the Bank of Spain, wants his manager to keep an eye on the volatile market for cryptos, which can change quickly. Hernandez says that some traders see crypto as a profitable investment, even comparing it to investments in real money.
The mayor also talks about the problems that cryptos have caused in traditional business, which he also talks about. Cryptocurrency, says Hernández, causes a bad reaction in other businesses, which leads to financial problems.
Hernández says that these requests in crypto transactions can also have an impact on banks that work with fiat. The more fiat-to-crypto transactions there are, the more server delays happen, which leads to payment failures.
Cryptography’s importance is a concern for the BdE.
In order to figure out how much of an impact the crypto industry will have on the traditional financial market, the Bank of Spain has looked into this. After the Bank of Spain Governor looked into crypto trading, he thinks it will change the value of the market in ways that are hard to imagine.
It makes Hernández sad that so many countries have switched to using cryptos instead of their own currencies, especially in Central America. Because of this decision, the BdE governor thinks that this will hurt monetary freedom and make it more difficult for the country to control how its money is used outside of the country. Even the International Monetary Fund wants Nayib Bukele, the president of El Salvador, to drop his plan to legally accept Bitcoin as a form of payment.
Pablo Hernández thinks there is a future for decentralized commerce, even though the governor of the Bank of Spain said that cryptos aren’t going to work out. Hernández says that cryptocurrencies would be very important to the financing plan in Spain, which is against what people thought in the past. Even so, his comment could be about how cryptos work when they are regulated by a central authority.
Cryptocurrency trading is in a bearish streak where Bitcoin can’t get back up after it lost more than 20% at its highest point. Fans think that cryptos will go up in price in the next few days because they have become more popular.