According to a Bloomberg story, Derville Rowland, one of Ireland’s top authorities, claimed that the increasing popularity of cryptocurrencies like bitcoin is “of considerable worry.” In an interview, the central bank’s director-general for financial conduct warned, “Crypto assets are rather a risky, uncontrolled investment,” and consumers should be “very conscious they may lose the entire investment.”
The growing popularity of cryptocurrency is causing alarm among central banks
Ireland’s central bank has joined a slew of other central bankers in warning against cryptocurrency investments. Previously, Bank of England Governor Andrew Bailey warned that cryptocurrencies have no fundamental value and that consumers should only invest in them if they are willing to lose money. Last week, Bank of Japan Governor Haruhiko Kuroda weighed in on the topic, stating that Bitcoin’s volatility is “extraordinarily high.” Bitcoin has increased by around 30% year to far. Rowland’s department at Ireland’s central bank is infamous for levying large penalties on some of the country’s largest financial institutions.
Rowland will become the European Securities and Markets Authority’s new chairwoman
Derville Rowland is a force to be reckoned with in the regulatory world. In July, she will assume the head of the European Securities and Markets Authority’s (ESMA) investment management standing committee. The committee assists in the development of rules for the finance business. Her ascension to fame came from her role as the face of the Irish central bank’s enforcement investigations. According to the regulator, most of Ireland’s retail banks have either been penalized or under investigation for mortgage overcharging. Her agency had previously punished Davy, Ireland’s largest securities business, for violations that led to the CEO and several executives resigning. As a result of the aftermath, that company is currently for sale.