The new bill that the PSOE plans to promote to eliminate cash in Spain may mean a strengthening of the presence of cryptocurrencies in Spain. But at the same time, aggravate the economic and financial problems of the nation.
The Spanish Socialist Party, known as PSOE, submitted a bill to the National Government proposing the progressive and definitive elimination of cash in Spain. This proposal was supposedly born due to the current situation experienced by the COVID-19 pandemic. A situation that has forced the authorities to impose restriction measures on society. Among these measures is the reduction in the circulation of cash, and even its total elimination.
Thus, based on this approach, the PSOE proposes to the government to digitize payment methods, to reduce the need for physical contact between citizens. Likewise, the measure aims to improve the current tax system and minimize cases of tax fraud. However, it seems that the bill also hides other interests.
In reference to this topic, our Commercial Director and CSO of Bit2Me, Javier Pastor, explained his point of view regarding the PSOE proposal.
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Will the PSOE proposal affect citizens in a negative way?
Faced with this question, our CSO explains that The Spanish government's interests in eliminating cash payments go beyond stopping the spread of the virus. Well, there are already many attempts that have taken place to formulate proposals of this type, whose sole objective is to eliminate the use of bills and coins within the country.
“Politicians have been proposing the elimination of cash for a long time. The pandemic is being taken advantage of, as another opportunity. They say that the use of coins and bills is a source of contagion, but their real objective is not to prevent the spread of the virus, there are other interests.”
Likewise, Javier explains to us that, if this law is approved and implemented, the freedom of citizens would be greatly affected. First of all, people's privacy would be completely lost. By eliminating the use of fiat money, citizens would be exposed. In fact, they would be obliged to use the digital means implemented by the government to make transfers and other banking operations. This is a clear route for censorship, explains Javier; arguing that this way the government and authorities could access users' checking accounts and filter the information they want.
For his part, in the economic sphere, Javier explains that the measure of eliminating money It is a means to establish negative interest rates in the economy. Well, the financing of the government with a purely digital model prevents citizens from freely controlling bank deposits.
Why is the PSOE trying to impose this new law to eliminate cash in Spain?
On the other hand, Javier considers that the measure aims to monitor citizens' capital. In this sense, he considers that currently, approximately 20% of economic activity is outside the regulated market. A fact that has caused a significant decrease in tax collection by the competent institutions.
"Currently in Spain it is estimated that 20% of the activity is outside the regulated market: black economy."
So, with the proposed law, the government seeks to take control over transactions and increase its oversight potential with no possible escape for citizens. Therefore, Javier argues that:
“We would be hostages and prisoners of the financial will of the rulers and banks.”
The new measure tries to disguise the government's need for collection and oversight, and what it needs to maintain a level of state spending. “elephantic and unsustainable”.
What would be the outlook for cryptocurrencies if this bill were approved?
If Spain decides to eliminate fiat money progressively, cryptocurrencies could benefit greatly. This in the sense that many citizens who do not now use cryptocurrencies would begin to turn their gaze towards this type of asset. All in order to store value safely, reliably and away from payment systems under government arbitrariness.
“The decentralized nature and power of sovereignty over wealth will make many consider storing value in this type of money (cryptocurrencies).”
Likewise, Javier points out that since the pandemic began, and with it, the current economic crisis, the reason for using bitcoins and other cryptocurrencies has evolved. In principle, many users acquired cryptocurrencies in order to speculate on their price and value, to obtain the best economic benefits.
“Previously, most buyers (of cryptocurrencies) relied on speculation to generate profits.”
People tried to generate the maximum profits in the shortest time possible through the cryptocurrencies, , especially of Bitcoin. But now, in current times, citizens are adopting cryptocurrencies as a way to protect their funds. This is in the face of currency devaluation and arbitrary state intervention.
“For three months the message has been, use Bitcoin as a refuge and guarantee that no one can get their hands on your bank account. “Money printing and potential FIAT devaluation is another reason.”
So what advertisements like this do is encourage undecided citizens to adopt cryptocurrencies more quickly, says Javier. Lastly, he adds that he has often considered that politicians and their arbitrary measures are the best allies for cryptocurrencies.
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