The vice president of the European Central Bank (ECB), Luis de Guindos, has warned that crypto assets are â€œnot a real investmentâ€ and are â€œsubject to a lot of volatility.â€ His comments followed massive sell-offs across a broad range of cryptocurrencies.
ECB VP Says Crypto Is Not a Real Investment
European Central Bank Vice President Luis de Guindos has warned about cryptocurrency investing in an interview with Bloomberg Wednesday. Referring to cryptocurrency, he said, â€œThis is an asset with very weak fundamentals and that is going to be subject to a lot of volatility,â€ adding:
His comment came amid sell-offs in a wide range of cryptocurrencies. Bitcoinâ€™s price briefly fell below $30K on some exchanges, such as Bitfinex. However, the price has recovered slightly and is hovering around the $38K level currently.
In its Financial Stability Review, the ECB said that the risks posed by bitcoin to the wider financial system appear to be limited. VP Luis de Guindos noted:
Recently, ECB Chief Christine Lagarde said that bitcoin has no intrinsic value and investors should be prepared to lose all money if investing in crypto assets. She is also concerned that certain cryptocurrencies are â€œprone to money laundering activities.â€
What do you think about what the ECB vice president said about cryptocurrency? Let us know in the comments section below.
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