Lord Hammond, a former U.K. chancellor of the exchequer, has warned people not to invest in cryptocurrencies. He said, “It’s gambling money, and people should be very careful.” Many people think they’re more like games than real investments. However, he is still a senior advisor to a crypto firm.
Lord Philip Hammond, the former British Chancellor, has reportedly warned investors to take extreme caution when investing in cryptocurrencies such as bitcoin and ether.
Lord Hammond served as Chancellor of the Exchequer from 2016 to 2019 and as Foreign Secretary from 2014 to 2016. From 2011 to 2014, he served as defence secretary. Last July, he was elected to the House of Lords.
He told The Mail on Sunday that if a member of his family asked him whether they should invest in cryptocurrencies like bitcoin, he would point them to the reality that huge and renowned established asset managers are now increasingly dipping their toes. But it’s only a toe in the water, as the former chancellor of the exchequer pointed out: “It’s a little part of their asset base exposed to a highly volatile asset class.” He continued:
As a mainstream investment category, it’s almost probably not suitable for retail investors… It’s a wagering account. In my opinion, people should be extremely cautious, and many people consider them to be more akin to gambling than serious investing.
In October, despite his warnings against bitcoin investing, Lord Hammond joined cryptocurrency firm Copper as a senior advisor. Traders, wealth managers, private banks, crypto funds, and family offices use the company’s digital asset infrastructure, which was valued at $3 billion last month.
Lord Hammond made it clear that he would not have joined a crypto investment firm. He did say, though, that distributed ledger technology will “ultimately include the entirety of what we currently consider of as financial services.” “My role with Copper is to increase the visibility of this issue, to ensure that people are aware that there is a great opportunity here.”