According to the vice-president of the European Central Bank, Luis de Guindos, crypto assets should not be considered “real investments” as they have “weak fundamentals.”
Luis de Guindos gave his opinion on the investment status of cryptoassets in an interview with Bloomberg TV this week. The Vice President of the ECB said that difficulties in determining the base value of crypto assets do not allow them to be classified as real investments.
In addition, in his opinion, cryptoassets have “very weak fundamentals,” and investors should be prepared for new price fluctuations. Luis de Guindos said:
“When you find it difficult to understand what are the real foundations of investment, what you invest in cannot be called a real investment tool. Such assets will be subject to great volatility. The situation we faced a few months ago when prices were rising is not much different from what we are now when prices are falling. ”
As a reminder, Fabio Panetta, a board member of the European Central Bank (ECB), recently said that mining cryptocurrencies such as bitcoin poses a threat to efforts to ensure environmental safety.
In February, the ECB said it wants to have a veto over the launch of stablecoins in the euro area and a larger oversight role to reduce inflation risks and keep payments secure.
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