© Reuters Arnal: Bitcoin’s strong rise does not make it a safe asset
Pamplona, Mar 24 (.).- The director of the Bank of Spain, Judith Arnal, warns that the strong rise registered by , 30% in recent days, “is not a sign that crypto assets are a refuge asset”, so if someone is thinking of investing in these products their advice is “only do it with what you are prepared to lose”.
During a conference at the University of Navarra, Arnal has indicated that “studies prove that there is an increase in public awareness of crypto assets, but the level of understanding about them has decreased.”
And he has pointed out that cryptocurrencies present, among other risks, financial ones derived from strong volatility or more lax governance and control mechanisms, as well as fiscal ones due to possible evasions, money laundering or other illegal activities.
He has also referred to the intervention of the public sector in the regulatory field and the study to introduce digital currencies from central banks.
The expert has highlighted the approval by the Basel Committee on Banking Supervision of standards for capital requirements for holdings of cryptocurrencies by banks, as well as the importance of the possible introduction among central banks of digital currency “for reasons of financial stability, sovereignty and protection of consumers of financial services and investors”.
However, it has specified that “continue to trust financial intermediaries, establish holding limits and discourage the use of the digital euro as a form of investment so as not to deprive commercial banks of deposits, their main source of financing” .