Crypto Markets Bigger Than Subprime Mortgages: Bank of Spain Governor

The governor of the Bank of Spain has issued a warning about the dangers of allowing cryptocurrency markets to interact with traditional financial institutions. According to Pablo Hernandez de Cos, the link between these unregulated markets and established institutions has strengthened as a result of the vast number of trading instruments that have been launched during this latest bull market episode, including ETFs, futures, and investment funds. In this context, Hernandez De Cos also stated that, “Some prominent private companies publicly announced their interest in using crypto assets for cash management, while others campaigned for it.” The Market’s Expansion and Its Risks This has prompted the governor of the Bank of Spain to issue cautions about the potential for instability in Spain due to the inclusion of crypto variables. The cryptocurrency sector in Spain has grown at an exponential rate, with some estimates putting the total value of crypto-related transactions at more than 60 billion euros ($64 billion). This was also mentioned by the governor of the Bank of Spain, who stated that they “must not overlook the fact that this market is already larger than that for subprime mortgages in the run-up to the global financial crisis.” Furthermore, according to Hernandez de Cos, the trading volume of some of the most prominent assets, including Bitcoin, Ethereum, and tether, is already approaching that of the New York Stock ...