Derville Rowland, managing director of finance at the Central Bank of Ireland, is concerned about the proliferation of cryptocurrencies, according to The independent Monday (May 31).
She said crypto assets are “quite a speculative and unregulated investment” and people should be aware that investors could lose their entire crypto investment due to the volatility of crypto.
Rowland, a senior official at Ireland’s financial regulator, is not the first to sound the alarm on crypto. Bank of England Governor Andrew Bailey also said cryptocurrencies have “no intrinsic value.”
Meanwhile, the UK’s Starling Bank has issued a temporary block on users sending deposits to cryptocurrency exchanges due to which Coindesk expressed concerns on Monday over “high levels of alleged financial crime with such payment.”
According to a spokesperson, the block will be removed after the additional controls are put in place.
Social media users have also recently complained about blockades on crypto transactions by other leading banks, including Barclays and online banking Monzo. Barclays said he did not put such a blockage, however, and Monzo did not comment.
In other crypto news, the Reserve Bank of India changed its stance on crypto, saying that stance is “no longer valid,” a report from Bitcoin.com said Monday.
The bank’s notice was called “Customer Due Diligence for transactions in Virtual Currencies (VC)” and was intended for “all commercial and cooperative banks, payment banks, small financial banks, NBFCs and providers of payment systems ”.
He said he “came to our attention through media reports that some banks / regulated entities had warned their clients against virtual currency transactions by referring to the RBI Circular … dated April 6 2018 “. This referred to the ordinance banning cryptography.
But now the Reserve Bank of India wants to make it clear that this order has long been canceled and banks can now provide services for cryptocurrencies.