- It only recognizes “encryption with backups.”
- It’s the tokens that fall under European Union control
- The authorities consider other cryptocurrencies a “Ponzi scheme.”
The central bank of Ireland commented on the recent MiCA bill.. On their website, they issued a press release from Gabriel McLough, head of the agency.
So, the central bank plans to remain cautious about the benefits and risks of cryptocurrencies. Now they are working to distinguish between secured and unsecured cryptocurrencies.
In doing so, McLough mercilessly criticizes the largest cryptocurrency on the market. According to the banker, Bitcoin is a Ponzi scheme, not an investment.
The Irish Central Bank distinguishes between “encryption with backup” and “encryption without backup.”
To the first type, they include electronic money tokens (EMT) and asset reference tokens (ART), which fall under the regulation of the new European law MiCA. McLough notes that such assets have appropriate rules and controls.
“But consumers should know that they are not without risk.”
The banker further criticizes “unsupported encryption” (including poorly supported or unreliable encryption). These are all cryptocurrencies, including bitcoin.
“Buying such goods can be like buying a lottery ticket: you can win, but you are unlikely to win. And to call it an “investment” is, of course, the wrong word.
“Ponzi schemes are a more accurate definition.”