“State cryptos would encourage the economy”
The Bank of Spain assured that the creation of digital currencies through official entities would be beneficial for the nations
A study recently conducted by the Bank of Spain, stressed that the creation of cryptocurrencies by official entities would be beneficial for countries.
As detailed in the research, the issuance of new currencies would help improve payment systems and financial policies, although they assured that this issue must be handled with due caution.
The author of the study and member of the General Directorate of Economics and Statistics, Galo Nuño, explained that with a digital currency banks could have better control over the returns of both savers and borrowers.
“One argument that could be considered when assessing the introduction of CBDC is that related to the improvement in the conduct of monetary policy through better control of the market returns faced by savers and borrowers. Also, the possibility of eliminating the restrictions associated with the zero level of the interest rate is theoretically attractive, especially in an environment of low interest rates such as the current one,“ explained Nuño.
On the other hand, the author explained that the amount of paper money circulating continues to grow in almost all of today’s world economies, which is why he considers that the central banks’ interest in the issuance of digital assets does not only focus on replacing the cash by digital payment methods.
K. Tovar
Source: Expansión
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