Central bank governor wants TDs to ban crypto ads to young people

“Crypto” advertising aimed at young people should be banned, the governor of the Central Bank of Ireland told TDs and senators on Wednesday.

he Governor, Gabriel Makhlouf, told the Oireachtas Finance Committee he was concerned about the impact of cryptocurrency on “Irish retail customers, particularly young people”.

“There’s a fair number of young adults who have put their money into crypto,” he said. “There’s an uncomfortable level of advertising targeting this cohort.”

“If you can find a way, I would recommend banning advertising for this cohort,” he added. “I think targeting those specific people is a bad thing, so we’re very concerned.”

Mr Makhlouf told the committee that there is no regulatory protection for clients investing in crypto assets, the best known of which is Bitcoin.

“Unhedged crypto is essentially a Ponzi scheme,” he said. “Trying to get people into it, first movers can get the money out of it at the right price.”

Mr Makhlouf pointed to new EU legislation intended to give the central bank regulatory powers over stablecoins and cryptocurrencies, where the value is tied to a currency or commodity such as gold.

The new EU laws will not extend to unsecured cryptos that facilitate crime, he said.

Mr Makhlouf told the committee that interest rates will rise at next week’s European Central Bank meeting.

“We need to continue raising interest rates at our meeting next week, taking a similar step to our December decisions and also our March meeting,” he said.

According to the governor, all future monetary policy decisions thereafter will be “data dependent” due to the “current prevailing uncertainty”.

“The likelihood of interest rates going back to negative levels, for example, where they were before last summer, I think those days are behind us,” he added.

Asked if interest rates could rise to 6 per cent, Mr Makhlouf replied that he would be “surprised if ECB policy rates reached those levels.”

https://www.independent.ie/business/irish/central-bank-chief-wants-tds-to-ban-crypto-advertising-to-young-people-42312833.html Central bank governor wants TDs to ban crypto ads to young people

Fry Electronics Team

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