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Crypto Assets Aren’t a ‘Real Investment,’ ECB’s de Guindos Says

Finance

www.coindesk.com 19 May 2021 15:45, UTC
  
Reading time: ~1 m

Crypto assets should not be seen as a “real investment,” according to European Central Bank Vice President Luis de Guindos.

  • Difficulties in discerning the underlying value of crypto assets prevent them being classed as real investments, de Guindos said in an interview with Bloomberg TV Wednesday.
  • Crypto assets have “very weak fundamentals.” Investors should be braced for more price swings.
  • “When you have difficulties to find out what are the real fundamentals of an investment, then what you’re doing is not a real investment.”
  • Crypto investors have had to withstand stomach-churning volatility this month, with the world’s largest cryptocurrency, bitcoin, incurring losses of 34% so far, the most for a single month since November 2018.

See also: ECB Speeds €1.85T Stimulus Program as Lagarde Frets Over ‘Premature Tightening’


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