Irish Central Bank official says cryptos like Bitcoin are a ‘great concern’ |
A senior official at the Central Bank of Ireland has warned that the use of virtual currencies such as bitcoin is a “great concern” for the country’s financial stability, according to a new report…
Ireland’s central bank governor Philip Lane believes cryptocurrencies like Bitcoin are a “great concern”, because of their volatility. Speaking to the Wall Street Journal, he said the financial sector should keep a close eye on cryptocurrencies, which he described as “a great concern”. In a separate interview with the Irish Independent, he said he was “fine” with the adoption of bitcoin as a legitimate currency, but warned that the growing popularity of Blockchain technology was an issue “we have to keep an eye on”.
A new report from Ireland’s Central Bank says that cryptocurrencies are a “great concern” and should be monitored closely by the country’s finance sector. The report revealed that cryptocurrencies like Bitcoin are now a “great concern”, and should be monitored closely by the country’s finance sector. Central Bank official David Forde said in the report that the “risks associated with the use of virtual currencies are considerable”, and that it is important for the country’s Finance sector to start assessing the risks and benefits associated with the use of virtual currencies such as Bitcoin.
Deerville Rowland, director of financial conduct at Ireland’s central bank, told Bloomberg today that cryptocurrencies like bitcoin are a big problem. The bank official also addressed investors in cryptocurrencies, explaining that cryptocurrencies are a rather speculative and unregulated investment, and warned them that they really need to be aware that they could lose the full amount of that investment.
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Rowland leads the regulatory work of the Central Bank of Ireland and will soon chair the Standing Committee on Investment Management of the European Securities and Markets Authority (ESMA), a group responsible for the drafting of regulations for the fund industry. In January, European Central Bank (ECB) President Christine Lagarde called for regulation of bitcoin (BTC) due to its highly speculative nature and use for money laundering. Just last week, Andrew Bailey, governor of the Bank of England, warned against cryptocurrencies: The asset class is dangerous and has no intrinsic value, while Haruhiko Kuroda, governor of the Bank of Japan, spoke out against bitcoin, pointing out its extremely high volatility. The rising popularity of cryptocurrencies has been accompanied by warnings from central banks around the world, and the only question is who will be next to sound the alarm?
In addition to cryptocurrencies, regulators are also looking at gamification of equity investments, which Rowland says is likely to come up soon in Europe. Online brokers such as Robinhood Markets Inc. have lured more small investors and startups into the U.S. market after users of online platforms such as Reddit drove down shares of companies such as GameStop Corp. and AMC Entertainment Holdings Inc. ESMA has held discussions on the issue, as has the Central Bank of Ireland, Rowland said. She added that the timetable for the new rules has not yet been set, but that they should be technology neutral.
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As part of the Bank of Ireland’s Centre for Innovation, the new Digital Currency Research Centre is due to open in September. It will be led by Dr. Colm McGloughlin, a well-known figure in the Irish financial services scene. McGloughlin has a PhD in foreign exchange trading and is also a senior lecturer at Trinity College Dublin. In his role as an economist at the Bank of Ireland, he has worked on innovative financial products including collateralised loan obligations and special purpose vehicles.. Read more about bitcoin ireland am and let us know what you think.
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