Ireland: Bitcoin, a Ponzi Scheme?

Despite the ongoing global economic crisis, the cryptocurrency space continues to grow. Evidence of this can be seen in the number of countries that have already adopted cryptocurrency. However, there are still others who remain skeptical about promoting investment in Bitcoin. Such as Ireland. According to the governor of the Central Bank of Ireland, Bitcoin is a Ponzi scheme.

A new blog by @makhloufgabs looks at the crypto sector and the importance of learning from the events of the past year as the market for crypto continues to evolve quickly. https://t.co/3QDmJA5Ujn pic.twitter.com/saSJX9tqHS

— Central Bank of Ireland (@centralbank_ie) May 5, 2023

Bitcoin and Ponzi Scheme: Ireland warns against investment risks

Despite the growing popularity of Bitcoin mining in Ireland, some authorities are hesitant to invest in this digital asset. To secure the Bitcoin investment market, the Central Bank of Ireland published a blog post on May 5th.

The blog post highlights recent developments in crypto regulation in Ireland. Specifically referring to the different measures taken by the central bank to protect consumers from the risks associated with Bitcoin investments.

The blog post also summarizes a statement by the governor of the Central Bank of Ireland regarding cryptocurrency:

“However, the Central Bank remain cautious on the benefits and risks of crypto, notwithstanding that Ireland’s exposure to the sector is currently low.”

Gabriel Makhlouf emphasizes an important point: the Central Bank of Ireland does not consider secure and non-secure crypto to be the same thing. He even considers Bitcoin (BTC) to be a Ponzi scheme.

“Secure crypto” first and foremost!

YES! Ireland displays a certain aversion to cryptocurrency. However, the Central Bank of Ireland admits the potential of secure crypto within the framework of the new EU regulation (MiCA).

On the other hand, Makhlouf believes that the approach to “non-secure crypto” requires a great deal of caution. The governor of the Central Bank, in fact, compares the purchase of non-supported crypto to buying a lottery ticket. “You might win, but you probably won’t,” he said.

For Makhlouf, it is more than vital to establish clear crypto regulation in his country. The rules will mainly focus on the treatment of user funds, disclosures, risk management, governance, and information exchange.