Bank of France Warns Against Purchasing Bitcoin

Despite the attitude improvement that US financial regulators have shown towards bitcoin, it seems that banks and regulators in other countries are still wary when it comes down to their support of digital currencies.

With this in mind, recent reports indicate that the Chief of the French Central Bank has warned about the risks associated with bitcoin investments. Therefore, Francois Villeroy de Galhau, who is the governor of the Central Bank of France, mentioned that bitcoin is neither a currency, nor a cryptocurrency. In fact, the governor only referred to it as a speculative asset.

He continued by stating that the extreme volatility and value of bitcoin lack any economic basis, and that they are not the bank’s nor anyone else’s responsibility. The statement ended with the governor saying that those who invest in bitcoin should do so at their own risk.

It is important to point out the fact that last Wednesday, the vice president of the European Central Bank mentioned that investors are currently taking a risk when purchasing bitcoin at the high price it’s valued at today. This statement is most likely due to the recent volatility, and fears over bitcoin being a bubble, in spite of no proof in this regards.

However, it is important to keep in mind the fact that the rising prices of bitcoin and other digital currencies are actively attracting investors, therefore increasing the amount of capital flowing in. The increasing prices have encouraged numerous financial institutions and banks to publicly declare that bitcoin is a bubble, scam or that it has no future. Luckily, the digital currency and investing community knows better, and trading volumes remain high, despite these statements.

While the Bank of France may not be interested in bitcoin and its future, the bank has shown an interest in blockchain technology. In fact, in early 2017, the bank launched their very own innovation lab, where they explore the future of the financial market. Reports have often showcased that blockchain technology remains on the table, thanks to its huge potential.

Based on everything that has been outlined so far, the digital currency community hopes that banks and financial institution who have publicly spoken against the currency, will continue to study it, and perhaps consider changing their opinion in the future. With the impending launch of bitcoin futures trading, it is expected that December will be a truly interesting month for the future of cryptocurrencies.