Luis Maria Linde, the head of the Bank of Spain, while attending a business conference that was held on Wednesday in Madrid outlined that the use of crypto-currencies created more risks than benefits.
He spoke in relation to the emergency of the new technologies in the financial and banking sectors as he send out a stern warning that efforts to move towards a digital economy were accompanied with challenges and cybernetic risks.
A number of market observers revealed that with the passage of time cryptocurrencies are becoming a viable tool for global geopolitics. It was sometime back that countries like Venezuela, Iran and Russia resorted to these digital assets as a clever to evade sanctions set in place by the various western powers. But how will the U.S – a world super power- control a country such as Iran and the rest whenever they step out of line in a way that is detrimental to the rest of the world? This is a difficult question that needs to be answered according to Luis Maria Linde.
Business dynamics tend to be shifting quite fast and that is quite evident considering just how cryptocurrencies are at the moment making it easier for a large number of nations to bypass the traditional apparatus of economic sanctions.
Thoughts regarding the dominance of the U.S dollar
They are the same nations that have been quick to assert that there is great need to drift away from the global over-dependence on the US dollar as well as from the centralized financial models.
The Parliamentary Commission for Economic Affairs of Iran has expressed its stand in relation to the latest developments. According to it, Cryptocurrencies is the most befitting alternative for the SWIFT’s interbank payment system and for the US dollar.
An official of Central Bank of Iran, Mohammad Reza Purebrahimi, has been quick to support the sentiment terming it one of the most ideal ways to bypass the use of dollars. He disclosed that he had contacted Russia in relation to the matter and he remains quite optimistic that they will reach an agreement.
It is expected that by July this year a meeting will be conducted in Tehran and it will be seeking to address matters to do with institutional and financial cooperation.
Luis Maria Linde remains unshaken by the much pressure being experienced at the moment. He insists that the risks by far still overweigh the associated benefits.