Bitcoin ‘of great concern,’ Ireland’s central bank official warns
The growing popularity of cryptocurrencies like Bitcoin is “of great concern,” the Central Bank of Ireland’s Derville Rowland warned recently.
Rowland stated, “Crypto assets are quite a speculative, unregulated investment,” and investors should be “really aware they could lose the whole of that investment.” The statement came after crypto markets shed nearly $1 trillion in a matter of days in one of the biggest historic crypto sell-offs.
The views on crypto from Rowland are set to contribute to the global regulation of the space, as the official will take over as chairwoman of the European Securities and Markets Authority’s (ESMA) investment management standing committee in July.
Earlier this year, the financial authority outlined the same concerns around crypto, stating that these types of assets are not regulated and pose significant risks for investors due to its highly-volatile nature.
Rowland is known for her stringent stance on financial violations, as well as her involvement in major enforcement investigations.
Back in March, the central bank fined Ireland’s largest stockbroker Davy for breaching market rules, eventually pushing the firm to put itself up for sale.
Rowland has also reportedly outlined the problem of “gamification” of stock investing, referring to coordinated trading via social media platforms, including Reddit-driven GameStop short squeeze.
A number of central bank officials have rang the alarm on crypto investment recently. At the starting this month, the Bank of England governor Andrew Bailey warned that cryptocurrencies have no intrinsic value, and that people should only buy them if they’re prepared to lose their money.
Last week, Bank of Japan governor Haruhiko Kuroda slammed Bitcoin, arguing that most of the trading was speculative.