The deputy governor of the Bank of Spain, Margarita Delgado, gave her opinion about cryptocurrencies and how they are increasing the risks in today’s economy. At an event hosted by PWC called “A climate of change,” Delgado explained that the continued and extended use of cryptocurrencies might bring different kinds of risks to the 12% of the population currently holding crypto.
Crypto Risks Examined by the Deputy Governor of Bank of Spain
The deputy governor of the Bank of Spain, Margarita Delgado, has issued her opinion about the use of cryptocurrencies and how they might affect the country’s economy. The statements were offered in a speech given at an event hosted by the multinational professional services network PWC, called “a climate of change,” which centered its focus on the changing nature of the financial world.
According to the deputy governor, the increased use of cryptocurrency poses a number of risk factors for the system. This includes the lack of information that people who are using them have about the topic. The decentralized finance sector’s obscurity can lead to over-leveraging, and payment issues. Delgado provided details about the potential effects of the crypto sector on other markets.
High volatility may have contagious effects on other markets due to panicked and excessive reaction that could be transmitted to other trading environments.
Get more Warnings and estimates
Delgado made mention of the potential impact that holding and investing in cryptocurrency assets could have on traditional banking due to the growth of mixed sectors that offer both services. She stated that the introduction of the assets would create a “very relevant increase in the patrimonial and reputational risks.”
When it comes to banks offering cryptocurrency-based services, the Bank of Spain already raises alarms. The Bank of Spain’s governor, José Manuel Barroso, spoke about the dangers of this group at February’s II Finance Observatory. He stated in similar terms that cryptocurrency exposure would pose new risks for the banking sector.
Delgado concludes that approximately 12% Spanish citizens own some type of cryptocurrency asset. Therefore, this debate is necessary to help them understand the full picture. She concluded that this was the right conclusion.
This would allow us to determine if these investors fully understand the risks and are not being driven by unrealistic expectations.
How do you feel about Margarita Delgado’s comments on cryptocurrency risks? Comment below.
Image creditShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.