The governor of the Bank of France, François Villeroy de Galhau, has issued a warning about the high risks associated with investing in Bitcoins. He stated that the Bitcoin is an asset “speculative” and is not a currency or a digital currency.
The Bank of France insists on the absence of economic base of crypto-currencies
Speaking at a conference in China, Mr. Villeroy said that the value of Bitcoin and its extreme volatility were not based on any economic basis, and that those who invest in this so-called digital currency do so entirely at their own risk. “Its value, its volume of transactions, as well as its extreme volatility is not based on any economic basis and are not the responsibility of nobody “, has warned the central bank. And to add : “Those who perform transactions in Bitcoin are taking a personal risk. “
The Bank of France is not the only one to warn
The position Of Galhau is also shared by the vice-president of the european central Bank, Vitor Constancio, who said earlier that investors who buy Bitcoins at the current price are throwing their money out the window. “Investors are taking huge risks by buying virtual currencies at prices that are too high,” he said.
Also, a number of well-known personalities in the world of finance have also issued their own warnings because of the upward trajectory continues for the price of Bitcoin. Among them, we find the investor billionaire Carl Icahn, who has argued that Bitcoin is a bubble and that it does not know why he is so popular. “I have to say honestly, I do not understand. And me, I stay away from something that I don’t understand “, he said.
Source : Cointelegraph