He financial sector calls for better regulation of cryptocurrencies To trow savings and investment products based in digital currencies. The so-called ‘crypto winter’ is already beginning to give way to a ‘cryptospring‘ incipient, in which traditional banks aspire to offer new products in the coming months for the most seasoned investors.
The crisis generated by the fraud of large exchange firms such as FTX, which dared to allocate resources captured from the crypto world for parallel investments, has left a clear trace of mistrust. The price of cryptocurrencies, also of the bitcoinsplummeted at the same rate as the start-ups saw their plans to attract investment cut short. Now they are revalued little by little, but with an aura of territory forbidden to reckless. After a fateful year closing, the recovery is already perceived in the expectation generated by the European Blockchain Convention in Barcelona which is celebrated this week. It has doubled attendees, up to 2,500. The incipient business was perceived this Thursday in any huddle of the Hyatt Hotel facilities, the one located in Hospitalet, at the entrance to Barcelona, with a futuristic saucer on the roof. In the assembly hall, the talks have been lavished around a varied mix of topics from the ‘blockchain’ world, of which cryptocurrency is a relevant part.
The recovery of confidence and the need for regulation are the great current needs as the epicenter of the debates. But in the near future, changes are expected. “The financial entities from all over the world are attentive to find the best moment to launch financial products based on cryptocurrencies, there are already some examples and it is a trend that will grow this year,” he explains. Victoria Gagoco-founder of the Barcelona convention. Daniel Salmeronan expert in the crypto world and also co-founder of the Barcelona meeting, acknowledges that there are still pending issues such as the improvement and adaptation of applications to the needs of investors or end customers, but that “in just five years a decentralized financial system will be created parallel to the that we currently know.”
The estates in cryptocurrencies With criteria they are far from ‘exchanges’ and prefer ‘cold wallets’, virtual wallets without profitability but which ensure that the heritage remains intact: “It is the antidote against the risk of ‘exchanges'”, they explain in the EBC. But those resources in cryptocurrencies continue and the newly created companies aspire to attract investors for this new universe that is coming, the ‘cryptospring’ based on a new promise of capital gains.
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Monteverde Conceptiondirector of the center of ‘blockchain’ and cryptocurrencies of the Santander Bank, shows prudence when venturing plans for the entity, but reiterates that 2023 will be a step forward in the sector. He predicted it last year and it rekindles his confidence. Rumors point to new products in a couple of months, but Monteverde warns that it is necessary to establish regulations that give investors confidence and provide clarity. The European legislation, baptized as MICA, will be in his opinion ready and in force in “a year and a half”. Regulation is key to the development of the crypto universe, in his opinion, since “the trust problem does not emanate from digital currencies themselves but from the fraud of some intermediaries.”
As a consequence of this lack of regulation, the first initiatives for financial products based on cryptocurrencies have taken place in Switzerland, which has been able to replicate a relatively simple regulation of traditional banking in the ‘blockchain’ world. Everything seems to indicate that it will be in Switzerland, where BBVA already has investment products of this type, where more new investment products and services will be launched. BBVA, Santander, JP Morgan, HSBC, Hauck… the list of entities that are finalizing or promoting products this year is even longer. But while the shadow of fraud hovers, some of the experts gathered in Barcelona recognize that prudence is the most appropriate strategy. The Swiss subsidiary of BBVA has, for example, a custody and purchase-sale service for crypto assetswhich allows to operate with ether and bitcoin.