The Central Bank of Spain is far from getting in line with the cryptocurrency enthusiasts in the region. According to the local media outlet, Banco De Espana governor Pablo Hernandez de Cos recently called on the government offices and state agencies to implement more stringent regulations on the nascent sector.
Hernandez specifically pointed out the visible emergence of top digital currency products like Bitcoin, Ethereum, and stablecoin USDT or Tether. He also made the decentralized finance or DeFi sector the target of his criticism and reservations. The major part of his public outlast was first noted at the II Observatory of Finance on Monday.
Hernandez, the governor of the Central Bank of Spain, not only urged the national financial and regulatory authorities to introduce interceptive laws for the crypto sector. He also attempted to sway the international financial enterprises to come together and build a legal fort around the cryptocurrency industry. Speaking in his address, he claimed that crypto trading requires strict monitoring laws.
He further claimed that digital assets pose a threat to the current centralized financial infrastructure. He also proposed the idea that the clients of the banking sector stand to lose a considerable amount of money due to their increasing interest in cryptocurrencies. He claimed that cryptonization or Bitcoinization does not account for a backup for risk management due to the lack of association with the banks.
The governor of the Central Bank of Spain has his doubts about the cryptocurrency sector. He strongly recommended the involvement of the National Securities Market Commission in the matter. According to his latest statement, the NSMC should take charge and implement strapping legal screening methods in the cryptocurrency sector.
It is worth mentioning that last week, a new legislative document granted the NSMC the power to regulate and monitor the digital asset market officially. Hernandez claimed that the state agencies should prepare the digital investors against the risk of a total loss of their investment portfolio as a forthcoming possibility.