{"id":4117,"date":"2022-05-13T21:13:38","date_gmt":"2022-05-13T21:13:38","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=4117"},"modified":"2022-05-13T21:13:39","modified_gmt":"2022-05-13T21:13:39","slug":"bank-of-spain-governor-highlights-need-for-fast-regulation-in-defi-and-crypto","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=4117","title":{"rendered":"Bank of Spain Governor Highlights Need for Fast Regulation in Defi and Crypto"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>Pablo Hern\u00e1ndez de Cos, governor of the Bank of Spain and chair of the Basel Committee on Banking Supervision, explained that the cryptocurrency space and decentralized finance (defi) need to be regulated swiftly to avoid risks of financial instability. Hernandez de Cos also mentioned how this swift approach should bring the crypto financial system into the scope of regulation before it grows bigger.<\/strong><\/p>\n<p>&#13;<\/p>\n<h2 style=\"text-align: center;\">Governor of Bank of Spain Talks Crypto Regulation<\/h2>\n<p>&#13;<\/p>\n<p>The governor of the Bank of Spain, Pablo Hern\u00e1ndez de Cos, who is also part of the banking supervision Basel Committee, explained his take on how he thinks cryptocurrency regulation should be addressed. In a keynote offered at the 36th annual general meeting of the International Swaps and Derivatives Association, Hern\u00e1ndez de Cos explained that there needs to be a swift move to regulate cryptocurrency and decentralized finance markets before they can grow to affect the financial stability of the economic system.<\/p>\n<p>&#13;<\/p>\n<p>On this issue, he stated:<\/p>\n<p>&#13;<br \/>\n&#13;<\/p>\n<p>Despite this phenomenal growth, cryptoassets still represent only about 1% of total global financial assets, and banks\u2019 direct exposures are relatively limited to date. Yet we know that such markets have the potential to scale up rapidly and pose risks to individual banks and overall financial stability.<\/p>\n<p>&#13;<br \/>\n&#13;<\/p>\n<p>Furthermore, the governor recommended a \u201cproactive and forward-looking regulatory and supervisory approach\u201d to the subject, declaring that there can be a balance between welcoming these technologies and also mitigating their risks.<\/p>\n<p>&#13;<br \/>\n&#13;<\/p>\n<h2 style=\"text-align: center;\">Criticizing Crypto and Defi<\/h2>\n<p>&#13;<\/p>\n<p>Hern\u00e1ndez de Cos also took the opportunity to criticize the current state of the cryptocurrency market, citing the crypto fever meme currencies like dogecoin caused in the crypto crowd and the effect that Elon Musk\u2019s thoughts can have on these markets. He remarked:<\/p>\n<p>&#13;<br \/>\n&#13;<\/p>\n<p>How many $3 trillion asset classes exhibit wild swings in valuations based on seemingly odd events, such as tweets published on 20 April or <em>Saturday Night Live <\/em>skits?<\/p>\n<p>&#13;<br \/>\n&#13;<\/p>\n<p>To him, these are clear signs that the market is not so decentralized as it aims to be, and that traits such as \u201crobustness\u201d or \u201cstability\u201d cannot be attributed to cryptocurrencies.<\/p>\n<p>&#13;<\/p>\n<p>This is not the first time that the Governor of the Bank of Spain has talked about the dangers of introducing traditional financial institutions to cryptocurrencies. Back in February, Hernandez de Cos also warned about this issue, stating that an increase in the exposure of private banks to crypto could introduce new equity and reputational risks.<\/p>\n<p>&#13;<\/p>\n<p><em><strong>What do you think about the statements of Bank of Spain Governor Pablo Hern\u00e1ndez de Cos? Tell us in the comments section below.<\/strong><\/em><\/p>\n<p>&#13;<\/p>\n<p>Sergio Goschenko <\/p>\n<p class=\"article__body__author__info__about\">\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/bank-of-spain-governor-highlights-need-for-fast-regulation-in-defi-and-crypto\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pablo Hern\u00e1ndez de Cos, governor of the Bank of Spain and chair of the Basel Committee on Banking Supervision, explained that the cryptocurrency space and decentralized finance (defi) need to be regulated swiftly to avoid risks of financial instability. Hernandez de Cos also mentioned how this swift approach should bring the crypto financial system into [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":4118,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-4117","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4117","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=4117"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4117\/revisions"}],"predecessor-version":[{"id":4119,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/4117\/revisions\/4119"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/4118"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=4117"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=4117"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=4117"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}