Gabriel Makhlouf stated that the value of cryptoassets is unsecured, which means they have no social or economic value.
Digital assets are not properly regulated, causing much controversy among lawmakers and regulators.
The official lamented, recommending that everyone stay away from investing in cryptocurrencies to avoid the risks of losing money.
“Investing in such products is like buying a lottery ticket: you might win, but you’re likely to lose.
So it’s hardly worth calling it an investment..” The Ponzi scheme provides a more precise definition of cryptocurrencies,” the Irish central bank governor said.
Gabriel Mahloof’s speech came just weeks after the European Parliament voted in favor of the bill on the regulation of cryptocurrencies in the EU (MiCA).
The law is a set of rules to regulate cryptocompanies and protect investors.
An Irish official assured that he welcomed the appearance of the document, because the BCUS is open to cryptocurrencies backed by any asset.
However, the regulator doubts that MiCA will be fully implemented in the EU by 2025:
“Cryptocurrencies are not going to disappear anytime soon, so they should be supervised to a degree that is commensurate with their risks.”
Earlier this year, the BCUS manager proposed a complete ban on advertising of cryptocurrency products and services to safeguard retail investors from losing money.