The growing interest in cryptocurrencies such as Bitcoin and Ethereum is a “Great concern,” according to Central Bank’s Derville Rowland.
“Crypto assets are quite a speculative unregulated investment,” she added that before warning that crypto investors should be “really aware they could lose the whole of that investment.”
Derville Rowland joins a host of central bankers who has raised the alarm on crypto investment.
Bank of England governor Andrew Bailey has warned cryptocurrencies to have no intrinsic value. People should only buy them if they’re prepared to lose their money. Bank of Japan Governor Haruhiko Kuroda added his voice to the chorus of concern, noting bitcoin’s “Extraordinary high” volatility.
In July, Rowland will take over the chair of the European Securities and market authority (ESMA) investment management standing committee. The groups which help prepare regulation for the fund’s industry.
Her rise to prominence has been as the face of the central bank enforcement investigation. The regulator recently fined or is investigating most of Ireland retail banks for mortgage overcharging. In March, it fined Davy, a stockbroker for breaches that ultimately resulted in the resignation of the CEO and other executives. The firm is not for sale as a result of the fallout.
Derville Rowland said at the time Davy “need only look in the mirror” when it “Asks itself how thing went so catastrophically wrong.”
Attention is also focused on the so-called ‘Gamification’ of stock investing, which Rowland expects to become an issue for Europe soon.
Online brokerage such as Robinhood Market Inc has brought a slew of mom and pop investors into the U.S market, and critics accuse. An online platform like Reddit has played with shares of played havoc with share firms such as Gamestop Corp. and AMC Entertainement Holding Inc.
The European Securities and Market Authority has discussed the issue, and the central bank Rowland said. There is not yet any timeline fixed for new rules, regulations to be “technology neutral.” “You’re getting better protection in older paper based processes then you are in more online processes”.
Also Read: Indian Banks Send Advisories To Customer Not Transact In Cryptocurrency
Decision-making risk control and performance are all improved with diversity; she made adding that the industry “has a very long way to travel.”
“The investment management sector is not diverse and need to work considerably harder on the topic. It’s something that we have brought to attention of boards and its something that is dear to my heart,” she added.
