Bank of Spain requests crypto surveillance after the increase in crypto adoption

In this post:

TL;DR Breakdown

• BdE Governor Pablo Hernández talks about the cryptos volatility.
• Hernández shows his concern about El Salvador’s decisions with cryptos.

Recently, the Bank of Spain Governor has demanded that trading with cryptocurrencies be surveillance. After the announcement, Mr. Pablo Hernández spoke about his present problems in the crypto-market.

Hernández emphasizes the lack of understanding that the investors have towards cryptos. As one of the main countries in Europe, Spain has not been involved in crypto trading, which is why there is a lot of misinformation about decentralized currencies.

Bank of Spain Governor demands crypto monitoring

Bank of Spain

Pablo Hernández, Bank of Spain Governor, asks his manager to watch the cryptos volatile market. Hernandez suggests that some traders take crypto as a profitable investment, even comparing it to fiat investments.

The mayor also talks about the problems caused by cryptos in traditional commerce. According to Hernández, crypto provokes a dangerous reaction towards other commercial areas, translating into financial conflicts.

Hernández highlights these requests in crypto transactions can also affect banking entities that work with fiat. The more fiat-to-crypto operations increase, server delays are caused, which causes payment failures.

BdE cares about the priority given to crypto

The Bank of Spain has analyzed how much effect the crypto industry will cause in the traditional financial market. After the investigations, the Bank of Spain Governor believes that crypto trading will affect the value of the market in unimaginable ways.

Hernández laments that all those countries have replaced their local currency with cryptos, focusing on the latest decisions made by El Salvador in Central America. Given such a decision, the BdE governor believes this will harm monetary freedom and loss of control over capital operations abroad. Even the international monetary fund has insisted on Nayib Bukele, president of El Salvador, to abandon the initiative to accept crypto Bitcoin legally.

Although the governor’s comments at the Bank of Spain about cryptos seem pessimistic, Pablo Hernández believes decentralized commerce has a future. Hernández indicates that cryptocurrencies would be essential for the financing scheme in Spain, which is contradictory to past opinions. However, his comment may be attached to cryptos working if a central authority regulates them.

Crypto trading is in a bearish streak where Bitcoin cannot recover after falling over 20 percent at its latest ATH. Fans expect cryptos to increase in price in the coming days after reaching mass adoption.

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