The vice president of the European Central Bank (ECB), Luis de Guindos, has warned that crypto assets are “not a real investment” and are “subject to a lot of volatility.” 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, “This is an asset with very weak fundamentals and that is going to be subject to a lot of volatility,” adding:
When you have difficulties to find out what are the real fundamentals of an investment, then what you’re doing is not a real investment.
His comment came amid sell-offs in a wide range of cryptocurrencies. Bitcoin’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:
The situation we had some months ago when prices were rocketing is not very different to the one that we have now when prices are moving down.
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 “prone to money laundering activities.”
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