Banker compares investing in cryptocurrencies to going to the casino and asks for greater supervision

Banker compares investing in cryptocurrencies like going to the casino
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The president of the Spanish Banking Association (AEB), José María Roldán, has admitted that he does not consider himself qualified to invest in cryptocurrencies and has requested more vigilance for the “mess” of crypto assets and less for banking.

During a financial conference organized by IESE held on Monday, Roldán warned that for him betting on this type of financial product is something similar to playing in the casino and assured that he has never invested in cryptocurrencies because he does not feel capable of entering that ‘universe’.

In fact, he showed mistrust and asked to stop looking at the regulated financial sector and start looking at “those new operators and those new activities, crypto assets, because that is where we have the mess“, in reference to the new players in the financial sector, including fintech and bigtech.

“How many inspections by the competent authority on consumer protection have bigtech received in the last ten years? Well, between one and none,” said Roldán before specifying that the problem is no longer in the lack of regulation, “we do not have it”, but there would not be a supervision to verify compliance with the standards.

“There is not going to be a tsunami of defaults or provisions”

In another vein, the president of the AEB also affirmed that “there is not going to be a tsunami of defaults or provisions” and that the banking sector “not only entered this crisis with a better situation than it had, but it is coming out of this crisis in a better situation than we could have expected.”

He also considered “magnificent news” that 52% of the financing guaranteed by the ICO line of guarantees for covid-19 can now begin to repay the credit: “We are talking about many companies taking advantage of the extension of terms, but with the uncertainty that still exists, that 52% of the financing is in a position to start repaying the loan is great news,” he said.

According to Roldán, the bank is in a “very good” position to finance the economic recovery process in Spain and has highlighted the “value proposition” that the sector has put on the table before the arrival of European funds: “The only thing What we are saying is that we are here in case someone wants to use us because the distribution capacity we have is unparalleled in the rest of the economic agents in Spain“.

He did warn that, although the recovery is coming “with a very important force in the short term”, the reality may go through an “asymmetric” reactivation between sectors and families.

In addition, he pointed out the importance of recovering in the medium term “the room for maneuver that it had before the pandemic in terms of public debt.” “We have a problem and that is that once every 100 years crises are happening once every ten years. In that sense, it is very important that the public sector have that room for maneuver because it has saved our lives when we had to face the pandemic,” he assured.

Finally, in reference to the possible end of the pandemic, he valued the importance of restoring normality with teleworking and mobility, he pointed out that “it is good that people can go back to the office and catch the plane.”