Bitcoin has had a tremendous week, by any accounting, but Stefan Ingves, governor of Sweden’s Riksbank and the chairman of global regulators at the Basel Committee, has warned investors that the risk may be huge. According to the regulator, investing in Bitcoin is a dangerous endeavor.
The banking regulator stressed that investment in things that rise wildly is generally not a good idea, given the nature of investment generally. He said that the future of cryptocurrencies and the traditional banking world are not particularly linked, and made it clear that legacy banking was not a thing of the past. He said:
“Let me also stress that sometimes there is a bit of a hype when people talk about fintech, thinking that old-fashioned banking is going to go away. But I don’t think that is going to happen because regardless of the technology available, in most countries we have had banks for hundreds and hundreds of years and most likely it is going to continue that way.”