Cryptocurrencies are digital assets that use blockchain technology to ensure their security, transparency and decentralization. These assets can represent different types of value, such as coins, tokens, smart contracts, or non-fungible assets (NFTs).
Cryptocurrencies can offer alternative financial services, such as peer-to-peer payments, loans, savings, investment or insurance, which may not have the same requirements as traditional financial institutions.
This can help expand access to financial services for the underbanked and unbanked population, estimated to be more than 1.7 billion people worldwide.
Spain is one of the European countries that has made the most progress in the regulation and promotion of cryptocurrencies. In October 2023, the National Securities Market Commission (CNMV) imposed restrictions on influencers who promote cryptocurrencies, as a consumer protection and fraud prevention measure.
This measure was pioneering in the European Union, where there is still no harmonized regulation on cryptocurrencies. In addition, Spain has promoted initiatives to promote the use and innovation of cryptocurrencies, such as the regulatory sandbox, the Dalion project or the Cryptoassets Lab program.
Furthermore, more and more companies offer mixed products using fiat and cryptocurrency services, helping to expand the adoption of cryptocurrencies in Europe; with companies like Ledger or Binance, among others; leading the market.
Ledger is a French company that specializes in creating secure hardware wallets for crypto assets. Ledger products use a Secure Element chip and proprietary operating system to ensure the highest level of security and control for users. The company has already sold more than 5 million units.
However, there are also challenges and risks associated with cryptocurrencies, both nationally and internationally.
Some of these challenges are price volatility, cybersecurity, money laundering, tax evasion, consumer protection, financial stability and environmental sustainability.
These challenges require greater cooperation and coordination between regulators, supervisors, service providers and cryptocurrency users. Greater education and information about the features, benefits and risks of cryptocurrencies is also needed.
In conclusion, cryptocurrencies can be a tool to advance financial inclusion in Spain and Europe, as long as an adequate, proportional and balanced regulatory framework is guaranteed. Cryptocurrencies can offer opportunities for economic and social participation to millions of people who currently do not have access to traditional financial services.
