Cryptocurrency Is ‘Based On Nothing’, Should Be Regulated, Says ECB’s Lagarde Cryptocurrency

The president of the European Central Bank, Christine Lagarde, insisted that unlike a digital euro, the cryptocurrency has no underlying asset. It should be regulated to prevent people from losing their savings by speculating on crypto assets, the senior ECB official suggested.

Cryptocurrency Is “Worthless”, Says ECB Governor

Christine Lagarde, head of the Eurozone’s monetary authority, argues that cryptocurrencies “are not based on anything”, and is concerned about people “who do not understand the risks, who will lose everything and who will be terribly disappointed, which is why I think that it should be settled.

Speaking to Dutch TV, Lagarde admitted that she was skeptical about the value of crypto assets, as opposed to a central bank digital currency (CBDC) like the digital euro, which the European Central Bank (BCE) is planning. is due out in the next few years. year. year. About cryptocurrency she also said:

My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as a security anchor.

The chief executive of the ECB made the remarks amid a difficult backdrop for crypto markets, when major coins such as bitcoin (BTC) and ether (ETH) fell 50% from their share prices peak in 2021, Bloomberg reported. Cryptocurrencies are also facing increasing pressure and scrutiny from regulators around the world, often citing threats to the financial system.

“The day we have central bank digital currency, any digital euro, I will guarantee it – so the central bank will be behind it and I think that’s very different from a lot of these things,” Christine explained. The guard. The governor noted that she does not own any crypto assets, but admitted that one of her sons had invested in crypto against her advice and that she was monitoring them “very carefully”.

Lagarde’s statements also come after other ECB officials had previously expressed similar concerns. In April, board member Fabio Panetta escalated the bank’s anti-crypto rhetoric, comparing the rise of crypto assets to the 2008 subprime mortgage crisis and the gold rush in the Far East, while calling for global regulation.

More recently, Panetta said the digital euro could become a reality in 2026 and set a timetable for its launch. The project is currently in the research phase and as the ECB is now stepping up its involvement with stakeholders, the realization phase could start at the end of 2023.

Keywords in this story

CBDC, Central Bank, Christine Lagarde, Crypto, Crypto Assets, Crypto Investments, Crypto Markets, Cryptocurrencies, Cryptocurrency, Digital Currency, Digital Euro, ECB, Eurosystem, Eurozone, Governor, Head, Lagarde, President, Regulation, Regulations

What is your take on the ECB’s position on cryptocurrencies? Share your thoughts on the topic in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, not what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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