Crypto is unsuitable for consumers to pay with
Experts in Europe think that crypto plays no role in future consumer payments because it is simply unsuitable.
Several European regulators have issued a joint warning about crypto assets. “These assets are not suitable for most private consumers as an investment or as a means of payment or exchange,” they emphasized.
European Supervisory Authorities
Three European Supervisory Authorities (ESAs) issued a joint statement warning on Thursday about the risks of crypto assets. The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA): “warn consumers that many crypto assets are highly risky and speculative.” Many people get into it, but lose a lot of money. Their statement also outlines “key steps consumers can take to ensure they make informed decisions.”
The regulators explained that their warning followed “growing consumer activity and interest in crypto assets. And the aggressive promotion of those assets and related products to the public.”
Crypto unsuitable for payment
These assets are not suitable for most private consumers as an investment or as a means of payment or exchange. Too much risk, too volatile. They noted that consumers have “the very real possibility of losing all of their invested money if they buy these assets.”
Furthermore, the ESAs warned that consumers should “be vigilant about the risks of misleading advertising. Also through social media and influencers” and “must be especially wary of promised quick or high returns, especially those that seem too good to be true.” That’s certainly true, but that’s relevant with every investment you make!
