- The Spanish Secretary expressed her concerns about the risks that cryptocurrencies possess for the national economy.
- However, the lack of central authority is the primary reason governments are afraid of cryptocurrency.
- Moreover, the Spanish government approves a bill requiring cryptocurrency owners to disclose crypto holdings.
- Furthermore, there is a lack of understanding about crypto driving government policies.
The Spanish Secretary recently expressed her concerns about risks that cryptocurrencies possess for the national economy.
Spanish Treasury Secretary Says Cryptos Carry a Risk of Default
The Spain government keeps on solidifying its position against broadly adopting digital currencies. During the Online Fintech Summit 2021, Ana de la Cueva delivered about cryptocurrencies’ risk on the national economy.
De La Cueva said,
A risk of default, given that the user does not have the protection offered by traditional payment systems against a default by the counterparty.”
Moreover, both the Bank of Spain and the National Securities Market Commission (CNMV) warned about the harm of digital assets that could affect the traditional monetary system. Recently, the Spanish government approved a bill requiring cryptocurrency owners to disclose crypto holdings.
In addition, cryptocurrency rejection would only reflect a lack of understanding of the positive impact the technologically-powerful digital assets can bring to the economy. Despite the government’s crypto rejection, there are still many countries showing more crypto usage.
High Crypto Usage: Nigeria, Vietnam, Philippines
The above diagram shows the global crypto consumer survey. Thus, Nigerians were well on the way to say they utilize cryptocurrency. The second and third highest rates of digital asset use in the survey were recorded in Vietnam and the Philippines, respectively.
Many governments have expressed fear over crypto as there is no central authority to regulate the value or oversee the exchange of tokens. Furthermore, the Central Bank of Nigeria orders the closure of cryptocurrency accounts. Recently, Dan Nathan, a Risk Reversal Advisors’ Chief says the US government won’t allow Bitcoin to replace dollars.
Generally, there is a lack of understanding about crypto driving government policies. So, necessary steps can be taken to educate them.