Christine Lagarde: “Crypto Currencies Are Worthless And Should Be Regulated” | Christine Lagarde

In the midst of one of the most complex times for the cryptocurrency market, the signals from regulators and financial institutions have not stopped. On this occasion, Christine Lagarde assured that crypto currencies have no value or basis and therefore must be definitively regulated.

For Ms. Lagarde, regulation is very important as it could prevent people from using their savings to invest in cryptocurrencies, which are highly speculative assets. And while she didn’t mention specific statistics, the levels of cryptocurrency trading on the continent have seen a large number of people putting a lot of money into this asset class. , which poses a total risk to the President of the European Central Bank.

Ms. Lagarde recently appeared on a Dutch TV show to talk about economic issues and cryptocurrencies were one of the main topics. And she added that she was afraid that people would lose all the money in crypto. The problem for Lagarde is that most people who invest in cryptocurrencies are not yet aware of the risks they face by investing in this asset class.

Right now, investing in cryptocurrencies is largely free in most parts of the world, and technically anyone can buy cryptocurrencies. This means that risk levels for those less knowledgeable about the subject increase dramatically. Regulation is therefore necessary to prevent the risk for investors from increasing.

Christine Lagarde against cryptocurrencies

This is not the first time Christine Lagarde has spoken about cryptocurrencies. She has commented on the asset class in the past and never had anything positive to say. She has always taken a rather closed stance on the subject and last year, when we spoke repeatedly about the possibility of developing the digital euro, she seemed to be one of the least convinced on the subject.

After some silence, Ms Lagarde’s comments came at a rather serious time. Amid the cryptocurrency turbulence and with currencies like Bitcoin and Ethereum leading the way in the market having lost nearly 50% of their value from past highs, this is a moment that could help Lagarde back up the theory. validate that cryptocurrencies are bad and should be regulated.

The fact is, it’s not just Christine Lagarde. In general, regulators around the world are paying more attention to cryptocurrencies. We now hear a lot about the oversight of this asset class and most of them are aimed at regulating them to limit their use.

How long will it take for cryptocurrency regulation?

The topic of cryptocurrency regulation has come up countless times, and while many central bank regulators and governors of financial institutions have had their say on the subject, few have managed to regulate cryptocurrencies or take significant steps towards this goal. reach.

Much of the cryptocurrency regulatory backlog is because it is largely uncharted territory for regulators. Integrating cryptocurrencies into the traditional economic structure and its laws is therefore a complex task.

And in the case of Europe and more specifically the Central Bank, things are not looking too positive for the market. First of all, the president of the Central Bank is publicly against cryptocurrencies and has already spoken several times about the development of a digital dollar that could hit the market in about four years if everything goes according to plan.

The fact that a central bank currency is being considered means that competitors should be driven out of the market, as China did a few months ago by banning all cryptocurrency-related activities. Moreover, according to Ms. Lagarde, they are an asset class with no value and no security, so the only solution is regulation.

And while it’s unclear at this point which path Christine Lagarde will take, it’s possible that somewhat restrictive regulation is on the way that will eventually affect the market and its investors.

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