- A top official of the Irish central bank has voiced concerns about cryptocurrency investments.
- Although the Central Bank of Ireland has taken a speculative stance on digital assets, BNY Mellon has decided to launch crypto custody services in the country.
- The new initiative by the American bank would enable custody services for Bitcoin, NFTs and CBDCs.
Ireland’s central bank has stated that with the rising popularity of cryptocurrencies like Bitcoin, digital assets are of “great concern.” At the same time, America’s oldest bank continues with its plans to launch crypto custody services in Ireland.
Cryptocurrencies are a ‘great concern’
One of the top officials at Ireland’s central bank, Derville Rowland, said, “Crypto assets are quite a speculative, unregulated investment.” She added that people should be “really aware that they could lose the whole of that investment."
The Irish central bank’s comments come after several central bank governors, including Andrew Bailey of the Bank of England and Haruhiko Kuroda of the Bank of Japan, have raised the alarm on crypto investments.
Bailey said that digital assets have no intrinsic value and that people should only make purchases of these currencies if they are prepared to lose their money. Haruhiko cited concerns of the fluctuations in crypto prices, stating that Bitcoin’s volatility is “extraordinarily high.”
In March, the central bank warned that crypto companies would have to comply with anti-money laundering rules. This move would mean that digital asset traders in the country would no longer be able to buy and sell digital currencies anonymously.
Rowland is expected to take over as chairwoman of the European Securities & Markets Authority (ESMA)’s investment management standing committee in the summer.
BNY Mellon to create a new hub in Dublin
Since the start of the year, BNY Mellon has increasingly adopted cryptocurrencies, even becoming one of the first US banking giants to offer custodial services in the country.
Following the New York-headquartered institution’s decision in February to enter the crypto space, the bank plans to expand its business to Ireland and launch a digital asset unit based in Dublin.
The new initiative, called “Digital Innovation Hub,” will be regulated by the Irish central bank and will act as a custodian for cryptocurrencies including Bitcoin, non-fungible tokens (NFTs) and central bank digital currencies (CBDC) in the future.
Through this hub, clients would be able to hold, transfer and issue digital assets.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
VeChain Price Prediction: VET bears eye 10% correction

VeChain price is slowly undoing the gains witnessed in the second and third weeks of September. If this trend continues, VET could stand to trigger a steep correction in the near future.
Bitcoin Cash Price Forecast: BCH traders can bank on short-term bounce to $228

Bitcoin Cash (BCH) price presents an opportunity that could profit traders who are bullish on the short term. Additionally, investors might get a better chance to accumulate due to a pullback to a key support level.
Shiba Inu inspired meme coin BONE notes first rise following the 55% crash in two months

Bone ShibaSwap price, at the time of writing, was just above $0.82, marking the first green candle since the beginning of August. Selling pressure concerning BONE is rather intense in the market, however, no major dump has been observed.
Binance reopens Belgium operations after three months of suspension by FSMA

Binance Exchange has reopened registrations for its Belgian community to access its products and services. The restoration comes with new “Terms of Use”, as the platform looks to steer clear of regulatory mishaps.
Bitcoin: BTC downside likely after 20-week EMA culls bulls

Bitcoin (BTC) bearish price fractal, as discussed in a previous article, is underway, but the lack of volatility is causing ambiguity and doubt. Regardless, BTC might see a bit of an upside before the long-term bearish scenario plays out.