Bank of Spain: Facebook Pound could represent an imbalance for the economy

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Yesterday, the deputy governor of the Bank of Spain, Margarita Delgado, has warned that Facebok's digital currency is named Libra, "Could become a destabilizing element of the economy."

Delgado warned during his speech at the II Banking Forum «The banking sector before the challenge of digitalization», that «The potential consequences are of such magnitude that we must maintain all kinds of precautions».

Among the most notable risks would be the possible violation of consumer rights, since, as mentioned, the contractual agreements that will determine Libra's behavior are not "transparent enough" so that users understand well the risks to which they are exposed.

Bigtech

The deputy governor of the Bank of Spain has also requested a "Neutral, fair and symmetric" regulation for large technology companies o bigtech, such as Facebook, Google and Amazon, that allow innovation to continue advancing and guarantee "equal opportunities" with traditional banking.

He also warned that it would be a two-sided phenomenon, on the one hand, it can contribute to expand the supply of financial services and improve innovation and access levels and, on the other hand, it houses «Countless risks», which may even qualify as «Systemic».

Finally, the deputy governor of the Bank of Spain insisted that the banking sector has to reinvent itself to remain relevant. "The future of the banking business involves the access, management and exploitation of the information available to be able to capitalize on the competitive advantages presented by the sector," he said.

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