Bank of France talks about the risks associated with bitcoin
Bitcoin's impressive growth in the $11,000 price range has definitely managed to draw a lot of attention. And more and more governments also seem to become interested in the cryptocurrency. In some cases, governments see cryptocurrencies as valid options, even looking to release national cryptocurrencies, while in others they warn on their risks.
In the latter category is the Bank of France, which seems to believe that bitcoin is associated with too much risk. The Bank of France governor Francois Villeroy de Galhau has recently issued a warning on the risks of investing in bitcoin. De Galhau actually went to dispute the status of bitcoin as a currency, saying that bitcoin is neither a currency nor a digital currency.
De Galhau made these statements during an event that was recently held in China. His warning starts from the idea that the value of bitcoin is too volatile and thus comes with too many risks for those who decide to invest in it. He said that bitcoin is a "speculative" asset, its value has no economic basis and investors take a lot of risks.
De Galhau also said that the value and volatility of this cryptocurrency are "nobody's responsibility."
The European Central Bank previously warned about bitcoin's risks
This is not the first time when such a message comes from the European Union. Previously, the vice president of the European Central Bank, Vitor Constancio, stated that investors in bitcoin put their money at very high risks.
Banks have also stressed the importance of clarifying bitcoin's status on the market. Goldman Sachs' CEO Lloyd Blankfein stated after the recent fall and restore of bitcoin's price that it is not for him. He said:
“Something that moves up and down 20 percent in a day doesn’t feel like a currency, doesn’t feel like a store of value. If it works out — and it gets more established, and it trades more like a store of value, and it doesn’t move up and down 20 percent, and there is liquidity to it — we’ll get to it.”
Bitcoin reached a record high of more than $11,000 and then dropped to about $9,200 at the end of November. Currently, it seems stabile in the $11,000 range.
