What will happen to cryptocurrencies

Among other risks mentioned in his statement, de Kos drew attention to the impact of cryptocurrencies on financial markets in general. Here’s the banker’s rejoinder, in which he shares his view of the situation.

It is true that the presence of large fluctuations in digital asset prices can change investor sentiment, causing an overreaction that eventually spreads to other ecosystems.

Bank of Spain governor Pablo Hernández de Cos

This risk, according to de Cos, is particularly relevant for stabelcoins, i.e. cryptocurrencies with a link to real assets – especially the US dollar.

In this case, the accumulation of withdrawal requests as a result of the general panic surrounding stablcoins could cause stress on money markets and, as a result, affect custodial institutions.


Withdrawal in this context refers to the direct exchange of tokens for real currency. If the demand for such transactions becomes very high, with the stabelcoin issuer unable to meet the demands of everyone willing to exchange, there could be a significant crisis that would also affect other markets.

A custodian is a company that holds and manages investors' money on their behalf. Non-custodial is cryptocurrency addresses that no one can influence. For example, those created with familiar hardware wallets.


According to Decrypt’s sources, the governor of the Bank of Spain has also expressed great concern about the trend of full legalisation of crypto in developing countries. He said that by doing so they would “jeopardise monetary autonomy” along with gaining “the ability to exercise effective control over the movement of international capital”.

So far, this has only had one precedent – the recognition of BTC as legal tender in El Salvador last September. As a reminder, that event sparked a wave of criticism from many experts as well as from the IMF.

Bitcoin legalisation has also sparked protests among the local population

Despite his calls for a cautious eye on the industry, de Cos remains optimistic that cryptocurrencies could play an important role in Spain’s financial system. He continues.

We have a feeling that cryptocurrencies could prove important in the wider financial system.

Cryptocurrency advertising in Spain

Meanwhile, the Advertising Standards Council of India (ASCI) has published 12 rules on the promotion and advertising of digital assets, including cryptocurrencies. The new policy regarding advertising campaigns is due to come into effect from April 1. There are five key points to be highlighted from the published rules. These are.

• All ads for cryptocurrencies after 22 April must include a disclaimer explaining that crypto and NFT tokens are unregulated and “can be very risky”;
• No comparisons of crypto-assets with regulated assets will be allowed in advertisements;
• Advertising campaigns will need to refrain from using the terms “currency”, “securities”, “custodian” and “depository” when referring to their products or services;
• Advertisements should never portray crypto-based investment products as an easy way to make money;
• Advertisements that talk about profitability should contain clear, accurate, sufficient and relevant information for investors.

As a reminder, there have been previous initiatives to regulate marketers more strictly in other countries – for example, in the UK. Clearly, with the right approach to regulating advertising about cryptocurrencies, positive results can be achieved by minimising the potential to deceive investors and create false expectations.


We believe that proactive regulation of cryptocurrency will become increasingly relevant in the niche as digital assets become more popular. This, in turn, will lead to acceptance of Bitcoin and other coins by major investors and the development of new projects. So there is a possibility that the bankers' initiative could have a good impact on the coin market going forward.


What do you think about this? Share your opinion in our millionaires’ cryptochat. We will talk about other topics related to the blockchain industry there as well.