The Spanish Central Bank warned about the risks of integrating cryptocurrencies into banking services

The leadership of the Bank of Spain (BE) believes that digital currencies, and in particular stablecoins, threaten national currencies.

BE Governor Pablo Hernández de Cos said that commercial banks that integrate cryptocurrencies into their financial systems risk financial and reputational losses. Now, according to the Governor of the Central Bank, many cryptocurrencies and their issuers have become competitors to traditional banks. Basically, these are stablecoins, which, due to their pegging to national currencies, can become a new means of payment and savings.

And although, the BE manager says, now the threat seems insignificant, as the market for cryptocurrencies and available services expands, banks will have to provide their customers with the ability to buy and exchange digital assets.

One of the worst consequences of the introduction of cryptocurrencies, de Kos believes, will be the “cryptoization of the nation” – when the state will not be able to manage monetary policy.

“This will jeopardize monetary autonomy and undermine the ability to exercise effective control over international capital movements,” the official said, adding that the massive adoption of cryptocurrencies would greatly affect the ability of regulators to combat money laundering.

Last week, the Bank of Spain issued a license to the Bit2Me cryptocurrency exchange. The company became the first licensed provider of digital currency trading and custody services in the country.