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

Tesla to accept Bitcoin payments
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.

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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.

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