Cryptocurrency Is ‘Based on Nothing,’ Should Be Regulated, ECB’s Lagarde Says – Regulation Bitcoin News

Christine Lagarde (President of the European Central Bank) insists that crypto currency does not have any underlying assets, unlike a digital Euro. The top ECB official suggested that it should be regulated in order to protect people’s life savings from speculating on cryptocurrency assets.

Cryptocurrency Is ‘Worth Nothing,’ ECB Governor Claims

The head of the eurozone’s monetary authority, Christine Lagarde, maintains that cryptocurrencies are “based on nothing,” and is concerned about people “who have no understanding of the risks, who will lose it all and who will be terribly disappointed, which is why I believe that that should be regulated.”

Dutch TV interviewed Lagarde about her doubts regarding the crypto asset’s value, and the central bank digital currency (CBDC), such as the digital Euro, that the European Central Bank (ECB), plans to issue in the coming years. She also spoke out about cryptocurrency.

It is worthless, it’s based on nothing and there is no anchor to safety.

Bloomberg reported that the top ECB official made these comments in difficult times for crypto markets. Major coins such as bitcoin and ether are now down half of their 2021 peak values. The regulators are increasingly scrutinizing cryptocurrencies around the world and placing more emphasis on the potential threat to the financial system.

“The day when we have the central bank digital currency out, any digital euro, I will guarantee — so the central bank will be behind it and I think it’s vastly different than many of those things,” Christine Lagarde elaborated. The governor noted she doesn’t hold any crypto assets but admitted one of her sons has invested in crypto against her advice and she follows them “very carefully.”

Lagarde’s statements also come after other ECB officials have already expressed similar concerns. In April, Executive Board Member Fabio Panetta ramped up the bank’s anti-crypto rhetoric, comparing the rise of crypto assets to the 2008 subprime mortgage crisis and the Wild West’s gold rush, while calling for global regulations.

Panetta recently stated that the digital currency could be realized by 2026. He also set a date for its launch. The current investigation phase is complete. With the ECB increasing its engagement with stakeholders and the implementation phase likely to begin by the end of 2023,

What’s your opinion about the ECB’s stance on cryptocurrencies? Comment below to share your views.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.