Blockchain Spain and the Iberoamerican Blockchain Alliance say that there is a prevailing need for public bodies to understand the use and possibilities of cryptocurrency technology such as Bitcoin.

In this way, respond to the comments issued on February 9 by the National Securities Market Commission (CNMV) and the Bank of Spain “on the risk of cryptocurrencies as an investment.”

Through a statement dated February 23, 2021, entitled «The importance of creating bridges between public bodies and the Bitcoin ecosystem «, Blockchain Spain and the Alianza Blockchain Iberoamérica established a position in the face of the questions made by these public institutions.

In this document, the organizations point out that the warning of both entities is not new. In 2018 they also warned “about the extreme volatility, complexity and lack of transparency”, although this time they admit that cryptocurrencies and blockchain “can be elements that dynamize and modernize the financial system in the coming years.”

Both the CNMV and the Bank of Spain agreed in 2018 with the following statement:

In recent months, numerous cryptocurrencies, including bitcoin and ether, have experienced high volatility in their prices, which has been accompanied by a significant increase in advertising, sometimes aggressive, to attract investment.

Bitcoin guarantees its transparency

In the statement of the bitcoiners associations, the transparency of Bitcoin is highlighted, which is guaranteed through the records made on your network. These are public and visible, and are available to any person or public body. “Few things occur to us more transparent,” say these entities.

The text indicates that one of the strengths of Bitcoin is that it inaugurates a disruptive concept such as of «digital scarcity» and all users -and non-users- have at their disposal the power to know exactly the bitcoin issuance policy, from the genesis block.

This phrase refers to the first Bitcoin mined block, on January 3, 2009, which included a reward of 50 BTC. The message engraved inside it not only serves to show that it was not pre-finished, but also sheds light on the ideas of Satoshi Nakamoto, creator of bitcoin: “The Times, January 3, 2009: Chancellor on the brink of second bailout for the banks”.

Bitcoin is a project of free software

In the report, Blockchain España and the Alianza Blockchain Iberoamérica, respond that the comment made by the CNMV and the Bank of Spain is devastating, who qualify the Bitcoin protocol or that of other public blockchains as lacking “transparency.”

Both associations assure that Bitcoin emerges as a free software project and open source in which anyone interested -including public bodies- can examine and audit the protocol.

For which he dared in to make the following statement:

Users have the absolute certainty guaranteed – by mathematics and cryptography – of participating in a protocol where the rules are clear for all participants, regardless of owning more or less bitcoin or being a veteran or a new user.

The text makes mention that users rate as one the advantages of bitcoin that does not have the backing of a central bank or other public authorities. This “avoids the participation of central entities liable to perpetrate bad practices or crazy monetary policies that generate inflation in national currencies and irrevocably impoverish their citizens.” “Venezuela or Argentina are two clear examples,” the statement reads.

In the document, the signatory organizations respond to the statement from the CNMV and the Bank of Spain pointing out that Bitcoin, as a decentralized protocol, has no CEO or board of directors, nor employees and there is no claim to include Bitcoin in “any deposit guarantee fund or investor guarantee fund ».

As a last point, Blockchain Spain addresses in the text the importance of proper training within the ecosystem. « Only then can one learn about the value proposition of Bitcoin, the correct way to interoperate with the protocol and the immense future possibilities of Bitcoin. ”

Banco de España and the CNMV criticize Bitcoin again

Twice this year, the Bank of Spain and the CNMV questioned Bitcoin as an investment mechanism and means of payment. The criticisms had also been made on February 11, 2021 in a joint statement to say that injecting capital into cryptocurrencies implies extreme volatility, complexity and lack of transparency.

As reported by CriptoNoticias, the position of both Institutions is not new, since three years ago they also warned that they were dealing with speculative bubbles and an “unregulated space.” Now that the reach of Bitcoin reaches more clearly to mutual funds, corporate capitals and companies, entities are still talking about “risks”, lack of liquidity and manipulations.

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