Say No to Crypto!
The chief of the French central bank has today warned on the risks of investing in bitcoin. Governor Francois Villeroy de Galhau warned that "speculative" assets are not a currency and, confusingly, not "even a cryptocurrency." Its value and extreme volatility have no economic basis, and they are nobody's responsibility. In other words, say no to crypto.
The central bank, he said, warned that those buying bitcoin "do so entirely at their own risk.” His sentiments echo JPMorgan CEO, Jamie Dimon’s when he said he would fire any employee trading bitcoin for being “stupid” and that if he found out one of his employees were buying Bitcoin that: “I’d fire them in a second. For two reasons: It’s against our rules, and they’re stupid. And both are dangerous.”
As a bit of background, The Bank of France (Banque de France), headquartered in Paris, is the central bank of France and is linked to the European Central Bank (ECB). Founded in 1800, it helped resolve the financial crisis of 1848 and emerged as a powerful central bank. Its main charge is to implement the interest rate policy of the European System of Central Banks (ESCB). France's original currency, the Franc were convertible to Euros (which the country adopted on January 1st, 2002) until February 17, 2005 at the Banque de France.
This announcement comes amid a media-storm following the price of bitcoin, which climbed back over $12,000 in the second week of January, 2018. The astonishing price gains have prompted a number of notable figures in finance to declare bitcoin a bubble. However, while Bank of France shows no interest in cryptocurrencies, it has shown an interest in the blockchain technology that makes cryptocurrencies possible.
Do you agree with de Galhau's sentiments to "Say No To Crypto?" Comment below and let us know your thoughts!