European Central Bank chief Christine Lagarde says cryptocurrencies are ‘worthless’
European Central Bank President Christine Lagarde called cryptocurrencies ‘worthless’ in an interview. Lagarde, who regularly has a negative view of cryptocurrencies, reiterated her view stating that they are “based on nothing” and should be strictly regulated. Lagarde further argued that investing in Bitcoin and altcoins can leave people “incredibly frustrated” because of the industry’s lack of proper rules. The comments by the ECB president and French politicians come after a violent sell-off in crypto markets that began in early May.
Lagarde’s comments on the crypto-asset were shared on the Dutch TV show College Tour, where she spoke to a predominantly student audience. “I’ve said all that crypto assets are highly speculative, very risky assets. If you want to invest in it, that’s your choice,” she said in response to a question. about investing as a young person.
“But what I really care about when it comes to crypto assets are those investments made by people with their eyes wide open to the fact that they could lose it all.”
“My very humble assessment is that it has no value, it is based on nothing, has no fundamental asset to act as a safe anchor. The day we have it. Central Bank Digital Currency (CBDC) out, any digital Euro – I’ll guarantee it. So the central bank is going to be behind it and I think it’s a lot different than that. “
Last year, Lagarde said that Bitcoin was used to carry out “reprehensible” money laundering. The French banker and politician has repeatedly pushed for harsher crypto regulations in the EU and criticized Bitcoin’s energy consumption.
There is, however, a twist to Lagarde’s cautionary tale. The ECB director said she “obeys” the fate of electronic money “very carefully” when her son opposes her advice and invests in tokens. “He’s a free man,” she added. Lagarde denied owning the coins and explained that she wanted to “practice what I preach.”
However, she added, “My son’s investment in Bitcoin does not change my view on whether Bitcoin is money or not.”
Cryptocurrency is an unregulated digital currency that is not a legal tender and is subject to market risk. The information provided in the article is not intended and does not constitute financial advice, trading advice or any other advice or recommendation of any kind provided or endorsed by NDTV. NDTV will not be liable for any loss arising from any investment based on any recommendations, forecasts or any other information contained in the article.