Bitcoin Not Currency Nor Digital Currency, Says Bank of France Governor

News | December 4, 2017 By:

Bank of France governor Francois Villeroy de Galhau has warned on the risks of investing in bitcoin, saying that the most popular cryptocurrency is a “speculative” asset and is neither a currency nor a digital currency.

Speaking at a Beijing conference, the central bank governor said bitcoin’s value and extreme volatility have no economic basis, and they are nobody’s responsibility. He added that the Bank of France warned that those buying bitcoin do so entirely at their own risk.

Villeroy was the latest to voice a warning about investing in bitcoin. Last week, US Federal Reserve vice chairman for supervision Randal Quarles warned that bitcoin and other digital currencies could pose greater danger to the financial system as they gain wider use. It was followed by European Central Bank (ECB) executive board director Yves Mersch, who said that banks should speed up the introduction of instant payments to counter the rise of digital currencies such as bitcoin.

Bitcoin suffered big price falls last week but recovered over the weekend, reportedly due to the announcement that the CME Group is to launch its bitcoin futures on December 18. At the time of writing, the cryptocurrency is trading at $11,597.70 per single coin.