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Former Chancellor Lord Hammond urged investors to be “extremely careful” about investing their savings in cryptocurrencies, despite taking an advisory role to a UK digital currency specialist.
In October, Hammond became a senior advisor to Copper, a company that develops cryptocurrency trading tools for institutional investors. However, he cautioned retail investors against investing in cryptocurrencies, which include Bitcoin and Ethereum.
He pointed out:
“If a loved one from my family asked me [инвестировать ли в криптовалюту]I think I would draw their attention to the fact that large and reputable asset managers are now increasingly giving up. But it’s risky – it’s a tiny fraction of their asset base exposed to a very volatile asset class. “
He added:
“This area is not suitable for retail investors as a main investment category. I know a lot of people who have little access to cryptoassets, but this is money that they wrote off. This is gambling money. I think people should be extremely careful. Many people refer to it more to games than serious investments. “
Copper was founded in 2018 and was valued at $ 3 billion last month in a funding round that raised $ 500 million. The British company helps investors protect their crypto assets from cybercrime. Hammond provides strategic advice to the company and promotes the UK as a digital asset hub. There is a growing investor interest in cryptocurrencies and digital assets such as “non-fungible tokens” that are bought online.
Hammond said he would not join a cryptocurrency retail-focused business, but said the “distributed ledger” technology behind digital currencies “will eventually embrace what we currently consider financial services to be.” …
Industries built on digital currencies have boomed in China and the US, and Hammond said, “We can harness the power of new technology and take advantage of the fact that, no matter what some of our friends in Europe may think, London is still the dominant hub. financial services on the European continent“.
The Bank of England and the Treasury will begin consultations next year on whether to launch the central bank digital currency used by households and businesses to be placed alongside cash and bank deposits, rather than replace them.
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