French Central Bank: “Invest in Bitcoin at your own risk”

François Villeroy de Galhau, governor of the Bank of France, said that a “speculative asset” is not a currency, and, oddly enough, is not even a cryptocurrency. Pointing to China as a case in point, Villeroy de Galhau continued: “Its cost and extreme volatility have no economic basis and the consequences are essentially no one's responsibility.”

Today, the head of the French central bank warned about the risks of investing in bitcoin.

François Villeroy de Galhau, the governor of the Bank of France, said that the “speculative asset” is not a currency, and, oddly enough, is not even a cryptocurrency. 

Using China as a case in point, Villeroy de Galhau continued: “Its cost and extreme volatility have no economic basis and the consequences are essentially no one's responsibility.” 

The Central Bank, he said, warns that those who buy or are planning to buy Bitcoin “do so at their own peril and risk.”

Villeroy's statement echoes that of European Central Bank Vice President Victor Constancio, who said on Wednesday that investors are taking a big risk by buying bitcoin at such high prices. 

The news comes amid media excitement over the price of Bitcoin, which rose to $11,000 last week. The astonishing rise in prices prompted a number of famous personalities and businessmen to call Bitcoin an “economic bubble,” one of them was billionaire Carl Icahn. 

He said: "To be completely honest, I just don't see a future in this and I don't understand everyone's enthusiasm. And I always try to stay away from such things." The investor and businessman compared Bitcoin to the Mississippi Company's economic bubble in the 18th century. “For me it’s the same thing,” he added.

Additionally, last month Credit Suisse CEO Teejay Thiam criticized Bitcoin, calling it “the very definition of an economic bubble.” The businessman considers anonymity to be the main problem with cryptocurrencies. 

Like other central banks, the Bank of France is not interested in cryptocurrencies, but in blockchain technology itself, which they consider very promising. Back in February, the financial institution opened a new laboratory in which they are exploring all the possibilities of the technology.

According to https://www.coindesk.com