Some central banks around the world have taken highly skewed and biased positions against cryptocurrencies mostly because of its innate decentralized character which moves control from a central point into the hands of the ordinary person on the streets.
The Spanish Central Bank on the other hand has aptly deviated from this trend coming from an informed and well-intentioned position. The Banco de Espana (BDE) only last week released a report supporting cryptocurrency and its underpinning Blockchain Technology. In the report, the pros and cons of having a digital version of the national currency were examined. The reported concluded that digital currencies and Blockchain Technology held enough potential to help positively impact the Spanish economy and subsequently lead to building beneficial monetary policy and financial infrastructure.
The BDE’s Director for Economy Galo Nuno was the lead for this report. He submits that Blockchain Technology could help with the effective tracking of the country’s monetary supply which could in turn help check inflation – this if implemented would be timely considering that as things stand, the BDE is unable to track the currency notes and coins in circulation.
The team at the BDE are so open-minded in their outlook on crypto so much so that they are leaning towards the possible issuance of the digital form of Spain’s cash currency – this currency if ever issued will most likely be centralized and controlled by the government through the BDE.
Mr. Nuno and his team are still in the works with exploring how to make use of a central bank-issued digital currency. The team will weigh the advantages juxtaposed against the downsides of digital currencies on the Spanish economy.
The report also states that shifting money onto Blockchain will help the BDE monitor and manage interest rates because a digital process will be quicker and easier to tinker. It is however quick to point out that the digital currency space is still pretty much nascent and that existing banks are yet to fully grasp and understand its workings.