The executive chairman of popular Spanish banking group, Banco Bilbao Vizcaya Argentaria (commonly known as BBVA), discusses the ’perfection’ of the digital currency and its limitation in an interview with CNBC.
The chairman, Francisco Rodriguez Gonzalez, laments the ‘bad purposes’ that cryptocurrencies are now being used for, which makes it a cautious and risky expedition for most persons and authorities to venture into. Gonzalez, however, still believes the advent of digital currencies is pioneering “an incredible digital revolution” which will eventually lead to a new world order. The risks keep getting steeper though as malpractices keep increasing. He said:
“Cryptocurrencies are perfect, but are used for bad purposes today, so [one has to be] careful. Blockchain and distributed ledger technologies are also perfect, they are big, big tools. But the cryptocurrencies must be understood, [especially] the corner where the malpractices are going.”
BBVA became interestingly involved in the application of blockchain technology in the fintech industry earlier this year. The banking group became the first multinational bank to issue a loan using blockchain, this year April.
The DLT innovation was used throughout the entire process of a loan of about $90 million. Carlos Torres, who is the current CEO of the group did predict a difficult future for blockchain technology as a whole though, given it is still in his infancy and has not been tested efficiently yet. Despite calling the blockchain ‘immature,’ BBVA would still sign off another loan worth about $120 million for civil engineering firm ACS Group, using the blockchain.
BBVA is one of the most prominent banking groups in Southern America, with BBVA Bancomer in Mexico the largest financial institution in the country. The group, which was established as far back as the 19th century, is currently the second biggest bank in the country after Banco Santander, going by a report by Economipedia.