Cryptos Are "Perfect" but Used Frequently in Illicit Activities, Spanish Banker Says

Omar Faridi
  • Senior Spanish banking executive Francisco González recently said cryptocurrencies are "perfect" but are often used for the wrong purposes.
  • González added that we're in the middle of a "digital revoiution", which will result in major social and economic changes.

Francisco González Rodríguez, the Group Executive Chairman of Spain’s second largest bank, Banco Bilbao Vizcaya Argentaria (BBVA), recently told CNBC: “We’re in the middle of an incredible digital revolution.” González added that there are important social and economic changes currently taking place.

The economics and business studies graduate further noted that society is suffering from wealth inequality problems, however, rapid globalization and improvements in communications technology have made goods and services more affordable and accessible than ever before.

Cryptocurrencies Are "Perfect"

González also mentioned: 

there are very big companies that are changing everything, which is good, but sometimes there are some ‘ripple effects’ [that] must be understood. In the case of the cryptocurrencies...they’re perfect, but they are being used for bad purposes today. So, [we need to be] careful.

Francisco González

Commenting on the potential benefits of blockchain, or distributed ledger technology (DLT), the Spanish banker said “they’re big, big tools” and may be applied to various different industries. González then went on to emphasize that cryptocurrencies "must be understood" and that it's important to pay attention to and address the "malpractice" that goes on in the space.

Digitizing The Banking Sector

When questioned about BBVA’s substantial fintech investments, the existing valuations of companies, and whether he thinks there are “some pockets which have been too frothy”, González remarked:

There are thousands of fintechs all over the world. Some are probably very cheap, some are probably very expensive. We don’t know. When we buy fintechs, or [invest] a 10% or 100% stake [in them], we are buying options.

Francisco González

However, it’s difficult to accurately assess the real, or true, value of these options, the banking executive noted. “It can be billions, it can be nothing...we have to see over time.” Going on to explain what financial institutions should be doing at this point, González said:

[We should look to] turn the bank into a digital house [because] the [potential or projected] numbers are amazing in terms of customer satisfaction, revenue, cost cutting, attrition rates.

Francisco González

As CryptoGlobe reported, Uber research engineer John Chen also thinks that most services, including monetary transactions, will become digital in the future. According to Chen, bitcoin (BTC) and other cryptocurrencies like nano (NANO) will become “universal global currencies that everyone can transact with.”