Why the Bank of Spain and the CNMV have again warned about the "risk" of investing in cryptocurrencies



The National Securities Market Commission and the Bank of Spain have come together this Tuesday to publish a joint statement in which warn of the "risk" of cryptocurrencies as an investment. A warning that updates the one they already made in 2018, they say, "due, among other factors, to its extreme volatility, complexity and lack of transparency."



Both regulators acknowledge that cryptocurrencies, other similar assets, and the technology behind "They can be elements that revitalize and modernize the financial system in the coming years", although it does put a few buts - in the form of a long and detailed list of risks - regarding the valuation of them as an investment alternative or payment method.






The warning has sparked misgivings from cryptocurrency evangelists, suggesting the disruption they could cause as a cause.




The entities led by Pablo Hernández de Cos and Rodrigo Buenaventura emphasize the high volatility that some cryptocurrencies, such as Bitcoin or Ether, have suffered in recent months and in the "significant increase in advertising, sometimes aggressive" that has accompanied these market movements to attract potential investors.



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This communication has caught the attention of some cryptocurrency evangelists as Jose Antonio Bravo, a tax economist and accountant at Negotians, as well as a collaborator of the Avalbit association dedicated to the disclosure on the use and investment in Bitcoin and other cryptocurrencies.



"Does anyone remember a joint statement from the BdE and the CNMV that warns that investment gold Is it a product that is not endorsed by any central bank, that is not an accepted means of payment, and that is not covered by customer protection mechanisms? ", wondered on Twitter Bravo.



In your opinion, "cryptocurrencies (mainly the best known) should be compared with precious metals and precious stones".




Bravo: "Perhaps the disruptive nature of Bitcoin and cryptocurrencies is a risk because it can alienate many people from traditional investment"










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This economist, speaking to Genbeta, consider that the reason for this warning it may have to do with the potential disruption that this new asset class could cause and its possible future.



"Perhaps the disruptive nature of Bitcoin and cryptocurrencies it is a risk because it can alienate many people from traditional investing, and it is even possible that in the distant future it will begin to replace legal tender coins as first-use money, "he says.




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The crux of cryptocurrencies, it said in another tweet, it is "Eliminate intermediaries and promote financial self-sovereignty, without vampires draining you to commissions" in response to the paragraph of the statement in which it is warned that the loss of the private keys may mean the loss of the investment, as various stories remind us.



The financial analyst and contributor to The Salmon Blog, Marc Fortuño, remember that issuing these types of warnings is one of the functions of regulators. "Warn that a product can cause great losses," he adds.




Fortuño: "That volatility [la del Bitcoin] it may cause losses. That is the key that mainly justifies the statement "










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Fortuño highlights another warning that the National Securities Market Commission made about CFDs and other speculative products in 2017 "due to a complex product and high losses experienced by clients."



With respect to the statement published a few hours ago and Bravo's opinion, he points out that "beyond comparing them with other raw materials, I would compare it [el Bitcoin] simply with high volatility products and that volatility can cause losses. That is the key that mainly justifies the statement. "



Furthermore, in his opinion "it is not money because it must meet the requirement of store of value (if the asset is very volatile it is not) and as a means of payment it is advancing, but it is not fully extended".



Cryptocurrencies, on everyone's lips.




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In recent months and weeks, cryptocurrencies are on everyone's lips. Since the end of November, Bitcoin began to face the achievement of new records, the news has followed. Large companies and even banks like BBVA have entered the crypto world, other digital currencies have felt the drag of the cryptocurrency par excellence and, lately, Elon musk has shaken the market and what is not the market.



He did it first with a change in his Twitter bio and yesterday with a shocking announcement: Tesla's investment of 1.5 billion dollars in bitcoin and plans to accept the currency as a means of payment in the future. Musk also talked about Bitcoin in one of the applications of the moment, Clubhouse.



Cryptocurrency scams, on the other hand, haven't rested either: recently the National Police arrested a youtuber for an alleged pyramid scam and, a month ago, the same body uncovered an alleged scam in which cryptocurrencies worth 7 million euros would have been appropriated. In the first case, courses on cryptocurrencies were offered; in the second, the detainees offered holders of bitcoins the possibility of managing them, investing them and obtaining high returns that never came.