The Committee is now finalizing the process of reviewing the comments received on this consultation and plans to issue a further consultation paper in the coming months. Let me offer some personal reflections at this stage, which should not be understood as preempting the outcome of this work. In particular, in deciding how best to harness the potential benefits from these markets while mitigating their risks in a world of uncertainty, in my view, it makes sense to err on the side of caution and prudence. In this regard, how many asset classes market themselves as being “stable” and “currencies” while often failing on both counts? We have witnessed some clear examples along these lines during the last few weeks. Additionally, as mentioned earlier, banks' crypto-asset exposures are currently limited, which means that there is currently very little activity that could even be shifted to the non-bank sector as a result of a conservative prudential approach. Finally, if there are unregulated areas of the financial system, including the emergence of a "shadow" crypto financial system, then the appropriate response is to bring these areas within the relevant regulatory perimeter, instead of diluting banking prudential regulation. The cross-border cooperation has been particularly visible in the adoption of international standards aimed at preventing the use of virtual assets in illicit transactions.
31.05.2022  Crypto-assets: a financial authority’s view Masters in Finance Closing of the Speakers Series, ESADE Pablo Hernández de Cos Governor  Good afternoon. I am delighted to be here today to address an audience of recent Masters graduates. Not only as recognition of the growing importance of furthering our education in such a changeable world, but also because it affords me the opportunity to talk about cutting-edge themes with those who will play a leading role in the future of our society. Among the many topical issues I could have selected for my address, I believe crypto-assets are the most suitable choice. Among other reasons, because young high-earners who study or work and live in big cities are precisely those who best fit the typical crypto-asset investor profile in Spain.1 Despite being a somewhat misleading term, so-called “virtual currencies” have already been part of our lives for over a decade now. However, only in recent times a series of factors have emerged that seem to be underscoring their ultimate potential to end up playing a significant role in the financial system.