Spain’s Central Bank, Banco de España (BDE), recognizes the merits of cryptocurrency and how digital currency could provide a boost to the entire Spanish financial system.
Spain’s positive adaptation of the cryptocurrency market was published in a new document by the BDE. The paper was authored by Galo Nuño, the Director General for Economy at the Banco de Espanã and was aimed at focusing on the “potential consequences and implications of digital currency for managing banking reserves, monetary policy and general financial stability.”
The merits of cryptocurrency were discussed in the report with Nuño highlighting how crypto could prove an asset in managing the general money supply in Spain, particularly for “reigning in the amount of money in circulation in the real economy”. It noted how the BDE is unable to track all currency notes and coins accurately and how blockchain technology and digital coins could help Spain track its money supply more effectively.
Using cryptocurrency to manage interest rates
The nine-page BDE paper touches upon the positive impact that could be achieved if the central bank issues cryptocurrencies and how adapting to crypto will help in managing interest rates at a time when central banks are having to increase the money supply by regularly printing paper money.
Nuño’s report is also skeptical of the fact traditional banks do not comprehensively understand the cryptocurrency sector.
The publishing of a report that recognizes and highlights the merits of cryptocurrency follows an earlier positive step made towards the adaption of crypto by Spain.
Blockchain bill proposed in Spain
Last month a blockchain bill was proposed Partido Popular, Spain’s ruling party, that would see cryptocurrency technology utilized in government operations. The country proposes to use blockchain to increase efficiency and transparency in both public and political systems.
A further testament of Spain’s growing recognition of the merits of cryptocurrency and increasing adaption of digital currency is the fact that thousands of retail stores throughout the country are now selling Tron cryptocurrency vouchers, including Carrefour, one of the largest hypermarket chains in the world.
Spain’s support for cryptocurrency provides a refreshing alternative to many governments and central banks around the world, which tend to be cautious and belligerent towards cryptocurrency and blockchain innovations.
Gabrielle Pickard-Whitehead is a freelance journalist and copywriter based in the Peak District, UK. Since 2006, Gabrielle has followed her passion for writing and has sculptured a rewarding career out of her love for the written word. Gabrielle thrives on creating compelling content related to current affairs, politics, financial news and the latest advancements in technology and innovation. Gabrielle is excited about having the chance to write about the constantly-evolving world of crytocurrency and enabling people to learn more about this rapidly-advancing digital asset.