At a time when the Bank of Ireland was warning investors about the risks of investing in cryptocurrencies, BNY Mellon launched digital asset protection services in the country.
BNY Mellon, the oldest bank in the United States, continues its efforts to enter the cryptocurrency sector by launching cryptocurrency services in Ireland through its local branch.
At the same time, the country’s central bank expressed some great concern about the growing popularity of bitcoin and other cryptocurrencies.
In an article named “Digital Innovation Hub”, it is stated that it will be operated by the country’s central bank and will act as custodian for cryptocurrencies such as bitcoin, non-exchangeable tokens (NFT) and digital central bank digital currencies (CBDCs) when they are released.
In short, this institution will allow its customers to retain, transfer and publish digital data.
This BNY Mellon initiative in Ireland comes at an interesting time, as central bankers around the world have repeatedly warned of the potential threats associated with investing in cryptocurrencies. This includes Derville Rowland, a senior official at the Central Bank of Ireland. Derville Rowland joined this “trend” recently.
Rowland describes crypto currencies as “quite a speculative, non-regulated investment.” Like the Governor of the Bank of England, she warned current and future investors about the possibility of losing all their money if they invested in it.
Rowland is expected to chair the European Securities and Markets Authority (ESMA) Standing Committee on Investment Management in July this year. ESMA is responsible for preparing regulations for the financial sector.
Thus, negative views and views on the crypto currency area could lead to the adoption of strict regulations in Europe. Let’s not forget that she described the rise in popularity of cryptocurrencies as a “major concern” for the financial sector.