Bank of Spain warns of risks of investment in Bitcoin and cryptocurrency

Tesla to accept Bitcoin payments Credit: Pixabay

AS the value of a single Bitcoin soared to over €39,000 following a $1.5 billion (€1.24 billion) investment by Tesla, the Bank of Spain warned about the high risk of investing.

It wasn’t so many months ago that the Bank indicated that it saw some positive reasons for Spanish banks to develop their own cryptocurrencies but it immediately acted alongside the Spanish National Securities Market Commission (CNMV) to warn investors to be prudent.

Since its early days of buying a pizza online, Bitcoin has seen huge rises and equally mega-falls in value and is suspected of being the currency of choice of criminals.

The Tesla Group has indicated that it is diversifying its investment options and will shortly be pricing and accepting payment for its vehicles in Bitcoins which has electrified the cryptocurrency market.

China prohibited open investment in Bitcoin because it considered such investments allowed individuals to hide their worth and avoid declaring assets and it is possible that the Bank of Spain is alert to the fact that some Spanish investors have shown a historical tendency to also try to sidestep taxes wherever possible.

Thank you for taking the time to read this news article “Bank of Spain warns of risks of investment in Bitcoin and cryptocurrency”.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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