Klarna CEO: When my cab driver asks about bitcoin, I worry latecomers will lose a lot of money

Klarna CEO: When my cab driver asks about bitcoin, I worry latecomers will lose a lot of money

Following bitcoin's weekend selloff, Sebastian Siemiatkowski, co-founder and CEO of Swedish fintech giant Klarna, is doubling down on his concerns around an ongoing gold rush into digital currencies.

"There's a lot of promise in cryptocurrencies," Siemiatkowski said Tuesday on CNBC's "Worldwide Exchange." "But at the same time, I'm deeply worried that the big risk is like when my cab driver is asking me if he should invest in bitcoin. That's when I get nervous that a lot of people will come late into the party and lose a lot of money."

Siemiatkowski has previously said he's "deeply worried" about posts promoting bitcoin on Twitter and thinks regulators should act to protect people from potential losses.

Bitcoin and other digital currencies have surged in price in 2021 on the back of increased interest from institutional investors, while major companies like Tesla and PayPal have also made significant moves in the space. Tesla bought $1.5 billion worth of bitcoin earlier this year and now accepts it as payment for its cars. Starting Tuesday, Paypal's Venmo will show users a new feature that lets them invest in four different cryptocurrencies “” bitcoin, ether, litecoin and bitcoin cash “” and share their purchases with friends through Venmo's social feed.

The cab driver has become a talking about a bitcoin