Frederic Borràs, recognized auditor and corresponding academician of the Royal European Academy of Doctors-Barcelona 1914 (RAED), warns on the risks and uncertainties that constitute the security system in the monetary transactions Blockchain, while it isn’t regulated or endorsed by any government or prestigious institution nor is there any legislation in this regard. In the same way that there are no accounting standards that contemplate their use. Borràs makes these reflections in the article “¿Estamos preparados para el Blockchain?” (Are we ready for the Blockchain?), published by the Spanish magazine Actualidad Fiscal y Económica in its edition of January 31 and by the newspaper Expansión on February 22.
For the academician, doctor in Economic and Business Sciences and founder of the renowned firm Morera Asesores & Auditores, “we are facing one of those cases in which reality is far ahead of the legislation. When this regulation is developed, its correct application can be verified in the audit. But we have to keep in mind that there is no technology that is completely secure, so in all likelihood Blockchain platforms will also have their weaknesses”.
Blockchain is a mechanism based on the interleaving of algorithms that come to define a transaction, as is the case of those performed outside of the markets between cryptocurrencies such as Bitcoin. The system is open, shared and recognized by a community that endorses each operation. However, there is no conventional regulator, with the result of a bubble with uncertain consequences. That is why Borràs appeals to prudence.
“The Spanish National Securities Market Commission has announced that it is considering issuing recommendations on its use, while the regulatory authorities of the United States have already issued recommendations to the executives of companies that use Blockchain technology in transactions, which they are quite general and place special emphasis on keeping the appropriate accounting records and maintaining the necessary internal control system over the financial information in such a way that the auditor can verify it, if required”.