Cryptocurrencies: Ideal Yet Misused
In a recent interview, Francisco Gonzalez Rodriguez, the executive chairman of Banco Bilbao Vizcaya Argentaria (BBVA), shared his perspectives on cryptocurrencies, emphasizing their dual nature. He stated that while cryptocurrencies are fundamentally “perfect,” their applications can often lead to nefarious activities. This statement raises important questions about digital currencies and their potential impact on the financial world.
The Digital Revolution: Opportunities and Challenges
According to Gonzalez, we are amidst an “incredible digital revolution” that promises to reshape societies. He foresees a new world order emerging from this technological transformation, whereby blockchain and distributed ledger technologies will play significant roles. However, he cautioned that we must be wary of the ripple effects that this change brings, especially in the realm of finance.
Understanding the Risks
Gonzalez advocates for a nuanced understanding of cryptocurrencies, particularly highlighting the risks associated with their use for harmful purposes. He remarked, “Cryptocurrencies must be understood, [especially] the corner where the malpractices are going,” underscoring the importance of vigilance in navigating this complex landscape. This call to action emphasizes the necessity for regulatory measures and informed investors.
BBVA’s Fintech Footprint
When discussing BBVA’s investments in fintech, Gonzalez painted a picture of cautious exploration. “When we buy fintechs, or invest a 10% or 100% stake, we are buying options. It can be billions, or it can be nothing after all,” he noted. This strategy demonstrates BBVA’s willingness to adapt and innovate, while also maintaining a hedged approach in a sector that remains volatile.
The Blockchain Journey of BBVA
BBVA isn’t a stranger to the blockchain revolution; in April, it proudly became the first global bank to issue a loan using this technology. The €75 million ($87 million) loan was not just a landmark moment for the bank but also a signal of shifting practices within the industry. Yet, Gonzalez mentioned that blockchain is still “not mature” and faces significant hurdles. In July, the bank continued its blockchain endeavors with a €100 million ($117 million) loan to ACS Group, demonstrating its commitment to exploring this advancing technology.
The Legacy of BBVA
Founded in the late 19th century in Bilbao, BBVA has morphed into one of Spain’s largest banks. According to reports, it ranked second in assets and capitalization in 2017, while its subsidiary in Mexico, BBVA Bancomer, emerged as the largest financial institution in the country. Under Gonzalez’s leadership since 2001, BBVA has navigated various changes and emerged as a pioneer in integrating modern technologies into banking.
