He was a director of Banco Santander for 35 years, and here is his prediction for Bitcoin: “Helicopters over Gran Via.”
Former Banco Santander director Marcos López Herrador, who has more than 40 years of experience in the banking world, shared his thoughts on Bitcoin and the future of cryptocurrencies with Carlos Moreno “El Pulpo”. López Herrador, author of A History of Banking and Money, offered a critical perspective on the role of digital currencies while explaining his view of Bitcoin, a topic that has received a lot of attention especially since Donald Trump’s victory.
Carlos Moreno introduced the topic by asking a question about Bitcoin, suggesting that in some ways, cryptocurrencies are a modern version of what were once the first forms of money that emerged in ancient civilizations such as Mesopotamia. López Herrador, who has witnessed the evolution of the financial system over four decades, began to explain his vision of Bitcoin as a form of “digital money.”
For him, Bitcoin is nothing more than a representation of money in its most abstract form: “It doesn’t have to be represented by something, it’s just information,” he commented. Despite the lack of physical backing such as gold at the time or fiat money today, López Herrador emphasizes that this does not mean that cryptocurrencies lack value or utility. Bitcoin, like any other type of money, has the ability to gain value through the trust and recognition placed in it, but unlike traditional money, it is not backed by any organization such as a central bank or exchange government.
Minted Bitcoin cryptocurrency coin in hand with market trading screen in the background
One of the most revealing moments of the conversation occurred when López Herrador mentioned the famous economic metaphor of the “money helicopter,” a concept that refers to massive injections of liquidity by governments to stimulate the economy. Although metaphorically speaking of “money falling from the sky,” López Herrador made it clear that he had not yet seen “helicopters flying over Gran Vía.”
“Helicopters over Gran Via”
This phrase refers to the idea that although unlimited money creation is often talked about in the context of expansionary monetary policy (such as during times of economic crisis), in practice it is not as simple or arbitrary as it may seem.
In his opinion, the creation of money should always be linked to the creation of real value in the economy: “You have money because you have already created wealth in your life’s journey,” López Herrador commented. That is, money, whether physical or digital, is a means of channeling the value generated in the economy, which arises as a result of productive activities, as a result of the creation of goods and services.
During the conversation, López Herrador emphasized that money in its most modern form, such as Bitcoin or central bank digital currencies (CBDC), continues to be a manifestation of value in the economy. However, he expressed some skepticism that cryptocurrencies could completely replace the traditional monetary system.
Rather than seeing Bitcoin as a threat to the existing financial system, López Herrador sees it as an evolution of money. However, he also expressed doubts about the stability of cryptocurrencies, noting that their value is highly volatile and their global adoption is still in the early stages. The future of money, he believes, may lie more in the adoption of digital currencies by central banks, which are already experimenting with the concept of central bank digital currencies (CBDCs) as a more controlled form of digital money.
your prediction about bitcoins
One of the most important implications of the Bitcoin and cryptocurrencies debate is a possible future without physical money. In this sense, López Herrador believes that cash transactions may eventually disappear, but only if the financial system is transformed in a way that guarantees trust and economic stability. In his opinion, money creation should be a more rigorous and deliberate process, rather than something arbitrary or without real support in the economy.
“When you get paid, you do so because you created wealth, not by accident,” he explained, suggesting that money, whether physical or digital, only has meaning when it is linked to productive economic activity. The evolution of money, from its origins in Mesopotamia to the digital age, must continue to reflect the creation of value. Otherwise, the risk of falling into speculation or economic bubbles is very real.