New saving and investing patterns are gradually taking shape across Europe. Interest in digital assets and fresh approaches to learning about financial products are highlighted in studies conducted by IESE and Bestinver IV. These emerge as the central innovations within the Savings and Investment Observatory of Spain. Even with rising popularity, the outlook for these investments remains uncertain. A majority of respondents in the report’s preparation expressed concern about a potential financial bubble, and NFTs account for only around 1% of portfolios. This was noted by José Luis Suárez, director of the IESE Campus in Madrid, during the document’s presentation on Wednesday. CNMV chief Rodrigo Buenaventura again cautioned against investing in crypto assets, pointing out that utility tokens, stablecoins, and most NFTs lack inherent value. He suggested that instruments copying crypto stocks or crypto bonds could advance market digitization, while also stressing the unregulated nature and elevated risk of these products.
These observations underscore the current reality: many crypto offerings operate outside traditional safeguards and investor protections.
Buenaventura outlined six distinct crypto asset types: utility tokens that grant priority access to products; NFTs; stablecoins designed to multiply a basket of digital assets; payment instruments; tokens representing participation in a project without paying shareholders; and instruments that imitate traditional financial products like crypto stocks or crypto bonds.
Over the past four years, CNMV warnings related to financial bans in Spain have risen from a few to eight, with nearly all blacklist-connected entities tied to cryptocurrencies. In contrast, CNMV warnings numbered 63 in 2018, aligning with earlier years, while subsequent years saw the tally exceeding 300. Editorial notes suggest that market stalls have begun offering cryptocurrency options simply because the trend is fashionable for the moment.
With regulation still lacking to safeguard investors or to be overseen by monetary authorities such as the Bank of Spain, cryptocurrency platforms have proliferated across social media channels. High-profile cases like FTX and Binance have not dampened this growth.
The forthcoming European MiCA regulation, expected to take effect at the end of 2024, is anticipated to set market standards for the sector. However, Buenaventura warned that MiCA should not be viewed as a cure-all; even under MiCA, many rules will still be implemented one or two steps below the standards applied to regulated financial assets. He added that the regulation process will not deliver immediate licenses, as auditors will need time to begin issuing them. The CNMV chair reminded audiences that even regulated assets do not come with investor guarantee funds.
Increase in debt repayments
Margarita Delgado, Vice-President of the Bank of Spain, participated in the forum organized by Bestinver and provided an overview of how household savings and investments have evolved since 2020. Inflation has eroded the real value of deposits and cash, contributing to a rise in household debt depreciation in 2022. Delgado explained that this trend likely reflects the rate hikes implemented by the European Central Bank, noting that higher variable-rate mortgage payments are squeezing family budgets.
In the past three years, the level of household wealth accumulation has been affected by the pandemic and its aftermath. In 2020, the savings rate of Spanish families hovered near 18% of gross disposable income, well above the average seen in the previous five years. The discussion highlighted how, in 2020, most savings gravitated toward liquid assets, before housing investments and financial assets gained traction in 2021. By 2022, data were incomplete, and financial asset purchases declined amid easing savings conditions.
Analysts emphasized the need to anticipate how these dynamics will unfold. They suggested that further rate increases could influence investment choices, affecting both the selection of financial products and housing investments. The message called for continued efforts to deepen financial education among citizens to support better planning, more informed borrowing, and more responsible investing.”
[Citation: CNMV annual reviews and European regulatory updates, 2024; Bank of Spain remarks, 2023–2024]