The chief of the French central bank has today warned on the risks of investing in bitcoin.
Francois Villeroy de Galhau, governor of the Bank of France, said the “speculative” asset is not a currency and, confusingly, not “even a cryptocurrency,” according to .
Making the remarks at an event in China, Villeroy continued:
“Its value and extreme volatility have no economic basis, and they are nobody’s responsibility.”
The central bank, he said, warned that those buying bitcoin “do so entirely at their own risk.”
Villeroy’s statement echoes that of Vitor Constancio, vice president of the European Central Bank, who Wednesday that investors are taking a risk buying bitcoin at current high prices.
The news comes amid much media excitement over the price of bitcoin, which climbed $11,000 this week. At press time, the cryptocurrency is passing hands for over $10,600.
The astonishing gains have prompted a number of notable figures in finance to declare bitcoin a bubble, including billionaire investor Carl Icahn.
Like other central banks, the Bank of France has shown an interest, not in cryptocurrencies, but in the that makes them possible.
Back in February, the financial institution a new innovation lab, with an eye to collaborations with blockchain startups.
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