According to the Bloomberg report, one of the top officials at Ireland’s central bank, Derville Rowland, said that the rising popularity of cryptocurrencies such as bitcoin is “of great concern.” “Crypto assets are quite a speculative, unregulated investment,” and people should be “really aware they could lose the whole of that investment,” the central bank’s director-general for financial conduct said in an interview.
Central banks raise concern over the rising popularity of crypto.
Ireland’s central bank has joined a host of central bankers who have raised the alarm on crypto investments. Earlier, 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 added his voice into the matter, noting Bitcoin’s “extraordinarily high” volatility. Bitcoin has risen about 30% year to date. Rowland’s department at Ireland’s central bank is known for having imposed heavy fines on some of the nation’s biggest financial firms.
Rowland will take over as chairwoman of the European Securities and Markets Authority.
Derville Rowland is a formidable voice in regulation. She is all set to take over as chairwoman of the European Securities and Markets Authority (ESMA) ‘s investment management standing committee in July. The committee helps prepare regulations for the funds industry. Her rise to prominence has been as the face of the Irish central bank’s enforcement investigations. The regulator has recently fined or is investigating most of Ireland’s retail banks for mortgage overcharging. Earlier, her department fined Davy, Ireland’s biggest securities firm, for breaches that ultimately resulted in the resignations of the CEO and other executives. That firm is now for sale as a result of the fallout.