BBVA sees great potential in cryptocurrencies

With profits from crypto investments nearing 1,400% in three years, it’s no wonder BBVA CEO Carlos Torres is not shy in backing cryptocurrencies.

He has gone so far as to ask Spain’s relevant authorities to ease off regulations and reconsider their stance regarding crypto, saying bankers need to “innovate or disappear.”

Cryptocurrencies are part of the new economic order that will be transformed by technologies such as blockchain,” he states (his bank poured over $75 million (£57 million) into Coinbase in 2014, earning it 1,400% in profits three years later).

However, Spain’s Ministry of Economy considers cryptocurrencies to be “activities posing huge risks” and the volatility that characterises them is a clear indication that they are “trapped within a speculative bubble.”

“Beyond the disruption created by the proliferation of cryptocurrencies and their volatility, the impact of technology can be enormous in the long term,” says Torres. He adds that, “The operational regime of cryptocurrencies imposed on financial institutions is highly restrictive. Authorities need to allow more leeway for experimentation and public policies should instead be aimed at promoting progress and allowing Spain to position itself as a centre for innovation to attract talent and investments.”

Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.

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