As the bitcoin (BTC) rate is skyrocketing, the governor of the Irish Central Bank has expressed concern about investing in cryptocurrency.
Gabriel Makhlouf, who also serves on the board of the European Central Bank, warned the public on Friday about the risk of cryptocurrency investments on Bloomberg TV. The Governor specifically referred to the latest warning from the UK Financial Conduct Authority on 11 January:
“As the British government stated a few weeks ago […] if people want to invest in bitcoin, they must be willing to lose all their money. This is definitely my opinion.
Consumer protection is now the most important concern for local regulators, Makhlouf said, as investors clearly see cryptocurrencies like Bitcoin as an investment resource. Despite growing concerns about consumer protection, Makhlouf was confident that cryptocurrencies such as Bitcoin did not pose a threat to global financial stability:
“Personally, I’m not sure why people invest in these types of assets, but they clearly see them as assets and they see them as investments. Our role is to ensure consumer protection. I see a major role in this, I do not see the financial stability problems that currently arise from Bitcoin itself. I’m more concerned about consumers making the right choices. ”
Several key members of the crypto community opposed Makhlouf’s comments. Galaxy Digital founder and CEO Mike Novogratz argued that unsupported bitcoin investments are not as risky as the central bank assumed.
Mahlouf’s remarks mirrored comments from European Central Bank President Christine Lagarde, who on Jan.13 called on global regulators to tighten cryptocurrency rules and described Bitcoin as “fun business.”
At press time, Bitcoin is trading at $ 37,338, which is about 20% higher than 18% in the last 24 hours.