Pablo Hernandez de Cos, Governor of the Bank of Spain, made a call to government officials to comprehensively monitor, regulate and oversee the cryptocurrency markets.
Bank of Spain Governor Pablo Hernandez also told Cos that it is essential to take action to manage the risk presented by the biggest cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH). In addition, he talked about the need to take control in areas such as stable cryptocurrencies such as Tether (USDT) and the decentralized finance (DeFi) industry.
In his speech earlier this week, Bank of Spain Governor de Cos called for greater cooperation, both at the national level and with other country regulatory bodies, to ensure that the crypto industry is closely monitored and to enact more coherent and comprehensive laws.
Pablo Hernandez de Cos, while calling for immediate action to regulate cryptocurrencies, did not speak negatively about cryptocurrencies, also referring to the advantages offered by the industry. Thinking that crypto assets could be instrumental in improving payment systems, Hernandez de Cos was nonetheless wary of financial stability and the risks it poses to the banking system.
“Cryptocurrencies are not under bank control”
In addition, the central bank governor stated that the argument of bitcoinization or cryptoization, which comes up from time to time, poses a risk because it is not under the control of the bank.
Because of all these factors, the head of the central bank believes it is vital to implement a recent initiative by the National Securities Market Commission that controls the promotions of crypto-assets in Spain.
As a result, Pablo Hernandez de Cos believes Spain's public institutions should step up their monitoring efforts. Regarding the central bank plans, he mentioned that the bank currently intends to closely monitor some crypto assets in the coming period in the fight against fraud.