Despite the global economic crisis, the cryptosphere continues to grow. The proof, many countries have already adopted cryptocurrency. Of course, others remain reluctant to promote investment in bitcoin. This is notably the case of Ireland. According to the Governor of the Central Bank of Ireland, Bitcoin is a Ponzi scheme.
Bitcoin/Ponzi scheme: Ireland warns of investment risks
Even though bitcoin mining has a large following in Ireland, some authorities show reluctance to invest in this digital asset. To secure the bitcoin investment market, the central bank of Ireland published a blog post on May 5.
The latter highlights recent developments related to crypto regulations in ireland. More specifically, reference is made to the various measures taken by the central bank to protect consumers from the risks associated with bitcoin investments.
I’blog post also summarizes a statement from the Governor of the Central Bank of Ireland on cryptocurrency:
“Even though Ireland’s exposure is low, the Irish central bank will still be cautious about the risks and rewards of cryptocurrency”
Gabriel Makhlouf underlines an important point: the central bank of Ireland does not put any secure crypto and insecure crypto in one basket. The latter also considers bitcoin (BTC) as a Ponzi scheme.
“Secure crypto” above all!
YES ! Ireland shows some aversion to cryptocurrency. The Irish central bank, however, admits the potential of secure crypto under the new EU regulation (MiCA).
On the other hand, Makhlouf believes that the “unbacked crypto” approach requires a great deal of caution. The central bank governor is indeed comparing buying unbacked crypto to buying a lottery ticket. “You could win, but you probably won’t”did he declare.
For Makhlouf, it is more than vital to have clear crypto regulations in place in Ireland. The rules will focus on the handling of user funds, disclosures, risk management, governance and information exchange.
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