Despite continuous warnings from the Central Bank of Ireland, crypto adoption among young people keeps accelerating, with the latest data from BPFI showing 20% of young Irish citizens now hold cryptocurrencies. The BPFI crypto adoption data defines ‘young people’ as those between ages 18 and 34.
Central Bank governor talks tough
While discussing cryptocurrencies earlier this week, the governor of the Central Bank of Ireland Gabriel Makhlouf likened cryptocurrencies to a Ponzi scheme, claiming aggressive advertising and social media personalities are behind the sudden growth in the popularity of cryptocurrencies among the young Irish population.
“The purchase of such products can be similar to purchasing a lottery ticket: you might win but you probably won’t,” Makhlouf said in a blog post on the Irish Central Bank website. He also went on to clarify that describing cryptocurrency as an investment is an abuse of the word, claiming “Ponzi schemes” might be more accurate.
This isn’t the first time the governor will kick back against cryptocurrencies in Ireland; he echoed similar sentiments months ago while speaking to a committee on finance, public expenditure, and reform.
Irish Central Bank welcomes EU’s MiCA legislation
In the same blog post, the Ireland Central Bank governor ‘welcomes’ the Markets in Crypto Assets Regulation, noting it’s an important step in crypto regulation.
“I welcome this move. Although not due to be fully implemented in the EU until the start of 2025 – it’s an important step in the regulation of crypto activities,” Gabriel Makhlouf said.
Ireland Central Bank acknowledges backed crypto assets – Gabriel Makhlouf
The blog post clarified that the bank distinguishes between unbacked and backed crypto assets, with all the negative sentiments the governor displays targeted towards unbacked cryptocurrencies. On the other hand, backed digital assets like Electronic Money Tokens (EMTs) and Asset Reference Tokens (ARTs) with appropriate reserves and controls are recognized by the bank.
In any case, young Irish people don’t seem to share the same sentiments as their central bank governor concerning cryptocurrencies, as crypto adoption among them is currently at an all-time high and continues to grow.