Lord Philip Hammond, the former Chancellor of the Exchequer, has advised cryptocurrency investors to take prudence while investing in the cryptocurrency market.
According to reports, the former British chancellor warned investors to be “extremely cautious” while investing in cryptocurrencies such as Bitcoin and Ethereum. Indeed, Hammond responded to a question on whether or not one should invest in cryptocurrencies, according to Finance Magnates, quoting The Mail on Sunday:
“If a member of my family was asking me, I think what I’d do is draw their attention to the fact that large and reputable established asset managers are now increasingly dipping their toe. But it is dipping a toe — it’s a tiny proportion of their asset base exposed to what is a highly volatile asset class.”
The Chancellor added:
“It’s almost certainly not suitable for retail investors as a mainstream investment category … It’s gambling money. I think people should be extremely cautious. Many regard them as closer to gaming than serious investing.”
Despite his statements, the former Chancellor has joined Copper, one of the largest UK-based digital asset custody and trading infrastructure firms that develops bitcoin trading solutions for institutional investors.
The company, which was founded in 2018, was valued at $3 billion last month after obtaining $500 million in a funding round. Investors may look to Copper for help in protecting their bitcoin investments from hackers. Hammond’s mission is to provide strategic advice to the corporation and to promote the United Kingdom as a digital asset powerhouse.
Mr. Hammond stated that London had a “window of opportunity” to rapidly build its digital currency economy post Brexit. He stated:
“We can grasp the opportunities of new technology and leverage the fact that whatever some of our friends in Europe might like to think, London is still the dominant financial services center in the European continent.”
Notably, Hammond’s thoughts on bitcoin assets come not long after the Bank of England (BoE) issued a warning about the cryptocurrency market’s increasing value. According to the Bank of England, digital assets endanger the United Kingdom’s financial stability.