The Spanish financial markets watchdog and the countryâ€™s central bank criticized â€” again â€” cryptocurrencies as an investment asset. The entities issued a joint statement warning about the high risks the cryptocurrency market poses.
Document: Crypto Adoption as a Payment Means â€˜Is Still Limitedâ€™
Per the paper, the Bank of Spain and the National Securities Market Commission (CNMV) reaffirmed their stance against considering bitcoin (BTC) as a means of payment. After dismissing cryptos as secure investment assets, they also pointed out the lack of regulation in the European Union.
However, they recognized that the European bloc is holding talks on establishing a legal framework to regulate the crypto environment.
The document elaborates on the â€œliquidityâ€ factor;
As a means of payment, both CNMV and the Bank of Spain believe that it is â€œstill limitedâ€ compared to other digital payment solutions. They added:
An Indirect Warning Towards Spanish Companies That Want to Replicate Teslaâ€™s BTC Move?
In the document, there was a mention of a speculative factor:
The statement got local media outlets like El EspaÃ±ol to speculate on its timing. In fact, El EspaÃ±ol believes the bodies issued that document as a â€œforceful alertâ€ in the wake of Teslaâ€™s bitcoin-related announcement. Quoting local experts, the media outlet says the warning is clearly a â€œwake-up call for institutions and companies.â€
Three years ago, the Spanish central bank and Spainâ€™s financial markets regulator published a similar document, where they raised concerns on cryptocurrencies and initial coin offerings (ICOs). However, both entities put particular emphasis across the paper on the lack of regulation in Spain, targeting retail investors.
What do you think about the new document issued by the Bank of Spain and the CNMV on cryptos? Let us know in the comments section below.