Dublin, Europe Brief News – The Republic of Ireland has become a giant in terms of crypto startups but its central bank is still reluctant to invest in digital assets.
The central bank of Ireland manages international funds and currently holding assets worth more than 4 trillion euro, is highly unlikely to allow those funds to put money in cryptocurrencies mainly because of their high market volatility.
The bank also mentioned that consumers must be aware of the high risk of buying or holding such instruments. As there is a higher possibility of them losing their entire investment.
Increased Interest in Crypto
The Bank of Ireland has stated that they have received several queries lately on whether Ucits and retail alternative investment funds (AIF) can invest in crypto-related assets.
As per reports “ At the moment while such assets may be suitable for wholesale or professional investors, the central bank is highly unlikely to approve a ucits or a retail investor proposing any exposure either direct or indirect to crypto-assets”
However, the central bank has not closed its doors for all crypto products, which propose that it may permit exchange-traded products for institutional investors.
Crypto industry expert Colin Wu suggested that some of the industry’s key players like Binance have already established a shop in Ireland.
If the Bank of Ireland suppresses the idea of crypto trading for retail, Binance may have to find some other place for their bases of operation.
Despise Digital Assets
Most Central banks hate Crypto because they almost have zero control over it. Their job is mainly to manage monetary policies and the economy.
The monetary policy and economy can have a direct impact on the population and it can be positive or negative. The impact is largely dependent on the central bank.
The crypto has been designed in a way to provide monetary control back to the hands of the general public rather than bankers or politicians.
The bankers or politicians simply do not want to lose their power and hold on to the monetary policy.
In recent times, the central bank of Pakistan, Russia, Thailand has highly criticised crypto with some of them suggesting a complete ban on its operations.
