Top Irish Central Bank Official Voices Concern over Crypto Boom

Derville Rowland, one of the top officials at Ireland’s central bank, has joined an array of regulators and traditional financial market experts to sound an alarm against the cryptocurrency boom. She said that the recent rise in popularity of cryptos like Bitcoin is ‘of great concern’, Bloomberg reported.

In an interview, she highlighted that crypto assets are ‘quite a speculative, unregulated investment’. Further, she warned investors to be cautious as they can lose all of their investments.

Rowland is an extremely strong voice within the European regulatory space. She heads the Irish monetary regulator’s division that imposed heavy fines to some of the biggest lenders operating in the country and will take over as the chairwoman of the European Securities and Markets Authority’s investment management standing committee, which helps in preparing regulations for the fund’s industry.

Regulators Are against Bitcoin

Her comments against digital currencies came days after some of the harsh criticisms made on the asset class by Bank of England Governor, Andrew Bailey. He said that Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term have no intrinsic value and warned investors to ‘buy them only if you are prepared to lose all your money’.

In addition, Bank of Japan Governor Haruhiko Kuroda raised his concerns on the ‘extremely high’ Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term of the cryptocurrency market last week. Recently, Jamie Dimon, Chief of JPMorgan, advised people to ‘stay away’ from Bitcoin. However, his bank is offering crypto investment services to wealthy clients.

“My own personal advice to people is [to] stay away from it. That does not mean the clients don’t want it. This goes back to how you have to run a business. I don’t smoke marijuana but if you make it nationally legal, I’m not going to stop our people from banking it,” Dimon said.

Cryptocurrencies, specifically Bitcoin, have seen widespread adoption by institutions in recent months. The inclusion of the digital asset into many company’s balance sheets and investments from billionaires and funds pushed the price of Bitcoin to a record high of almost $65,000. However, the trillion-dollar market has been witnessing corrections for weeks as Bitcoin shed more than 45 percent of its peak value.