State crypto-money policy and thus the Central Bank could facilitate currencies activities. In Particular, the Blockchain could help technology, interest rates, and to control the circulation of money and would lead to more financial stability. To this end, the Banco de España (BDE), is the Supreme monetary institution of Spain, in its recent report on the impact of government crypto-currencies. Nevertheless, the Central Bank urges caution. Namely, the Blockchain could be technology as a positive factor for the economy of the country. However, there is a need for further research and the view of the possible risks.
Even the Bank – during the Spanish Central Bank considers Bitcoin and Co for some time with a critical eye, highlighting the Supreme financial authority of the country in its most recent report of the possible potentials of specially-controlled digital currencies. This could facilitate the Management of the national monetary policy and thus the economy of the country supports.
Under the title of “Possible consequences for monetary policy,” highlights the report, in Particular the control of money in circulation. While the Central Bank is not currently able to monitor this effectively, whether such control, using specially issued digital alternatives is possible, the report said.
While the guidelines of the interest rate and monetary policy in Europe will be decided by the European Central Bank, is entrusted to the Central banks of the member States, as well as the BDE with their national Management. This also includes the management of the national foreign exchange reserves, along with the processing of payment transactions.
State crypto-currencies as an economic engine?
In addition, the report says that Blockchain technology could help to improve interbank payments, as well as short-term interest rates to manage. State-and-spend crypto-currencies could be characterized as an effective Instrument to control the demand and thus the economy in the country. So that would benefit, according to the report, savers and lending to borrowers under the improved interest rate conditions. This would ultimately strengthen the Spanish economy.
This is currently a long time an unexpected Phase of economic consolidation. While the country still belonged in the Euro crisis, the countries most affected, recover economy and labour market in the Iberian Peninsula more and more. The BDE for 2018 at the moment is a growth of almost two and a half percent. Nevertheless, the country is groaning still under a above-average unemployment rate of around 17 percent – are affected, especially young people.
Nevertheless, the Spanish Central Bank urges caution
This Blockchain technology could, however, contribute to the economic recovery, it is mandatory to explore this fully. So a preoccupation with their applications is necessary, without this blind. Because even you understand the logic of the technologies are not complete. Significant risks and uncertainties, such as a cyber attack, there were, according to the Report.
Meanwhile, the BDE to maintain its level of criticism vis-a-vis non-state crypto-currencies. So, the Central Bank Director Luis Linde had equipped their risks only in may with scolding words.
“Crypto currencies are experiencing a low acceptance as a means of payment, suffer from extreme volatility, have a variety of vulnerabilities in the operating and be associated with the fraudulent and illegal activities.”
The Blockchain is the Spanish authorities for a sympathetic ear. In June some of the Spanish members of the ruling Partido brought Popular last a bill on the way, which of the public administration suggests, Blockchain-technology and thus to save costs. In addition, the government in Madrid, Blockchain plans to lure companies with tax breaks to the country.