Ireland's central bank is concerned about the popularity of cryptocurrencies
Derville Rowland, one of Ireland's Central Bank's top executives, said the growing popularity of crypto assets is primary anxiety for the banking sector.
In an interview with Bloomberg, she stressed that due to the speculative and unregulated nature of digital currencies, consumers have a responsibility to clearly understand what they are investing in.
Derville's department in the context of the central bank of Ireland is known for being able to obtain high fines for financial companies that violate the law. One of the striking examples was the previously fined Davy, the largest brokerage firm in the country.
Thanks to his merits, in July Derville, will take over the chairmanship of the ESMA Investment Management Committee, a group that develops the regulatory framework for the financial industry in general and for its specific representatives. Consequently, it will be able to indirectly influence all regulatory aspects related to digital assets.
In addition to cryptocurrencies, the so-called “gamification” of investing in stocks is becoming a problem for world banks. Companies like Robinhood Markets have managed to attract the attention of many "moms" and "dads" of investors, which is why they are constantly criticised by regulators for turning trading into a "social activity." Incidents with Reddit raising shares of GameStop and AMC Entertainment Holdings also add fuel to the fire. That is, people began to use social media to actively lobby for their investment advice.
Rowland believes diversity is a boon for the financial services industry. But, at the same time, she believes that the cryptocurrency industry needs to go a long way in information and regulation. This will benefit her, improving not only the relations between the governing bodies of countries globally but also large investors.