Crypto Investors May Lose All Their Money, Says Irish Central Bank Governor
It had been almost three weeks since Bitcoin (BTC) had been experiencing a lot of volatility with respect to its prices. However, in the past 48 hours, Bitcoin’s prices have started surging and people have again started rallying up to it.
However, some of the major financial institutions and entities have now started expressing their thoughts and views about cryptocurrencies. One of the personalities sharing his concerns about cryptocurrency investments is the governor of the Irish central bank.
Gabriel Makhlouf also a prominent member of the governing council of the European Central Bank. Makhlouf warned the entire cryptocurrency community about the risks of investing in cryptocurrencies at present. The Irish Central Bank Governor addressed the entire crypto-investment community regarding the concern on January 29, 2021, on Bloomberg TV.
While talking about cryptocurrencies, Makhlouf specifically talked about the recent warnings that have been issued by the UK’s Financial Conduct Authority (FCA) on January 11, 2021.
It was January 10, 2021, when Bitcoin prices plunged all the way down to $30k per BTC from $41k per BTC. That is when the Financial Conduct Authority (FCA) of the United Kingdom released a statement surrounding cryptocurrencies. In the statement, the FCA warned the entire community investing in cryptocurrencies to be cautious.
It warned the investor community to be extra vigilant and make investments on their own responsibility. The FCA stated that in the current times, cryptocurrencies are extremely volatile and they may end up crashing down. If that happens, then none of the regulatory authorities will be able to support and help the investors who end up losing their assets.
The Financial Conduct Authority (FCA) also issued a clear warning that if the investors keep investing in Bitcoin (BTC) then there are possibilities of them losing all their assets.
Makhlouf stated that given the above situation, it has become extremely important for the regulators to protect their consumers. It has been observed that the majority of the investors are now looking to make investments in Bitcoin (BTC) due to its current situation. These investors are looking at Bitcoin (BTC) as the best source of investments and savings.
Although consumer protection is now the biggest concern for the regulators, still Makhlouf has not lost all hope in cryptocurrencies. According to Makhlouf, cryptocurrencies such as Bitcoin (BTC) will not be posing any threat to global financial stability.
The governor stated that personally, he does not understand why people are investing in cryptocurrency assets. However, there is a large number of investors who think cryptocurrency assets a good and reliable source for making investments. He stated that being part of the global financial infrastructure, their role is to ensure that the assets of the consumers are protected.