The President of the European Central Bank (ECB) declares cryptocurrencies to be worthless
In an interview with Dutch TV over the weekend, the head of the eurozone monetary authority Christine Lagarde bluntly stated that the majority of investors do not seem to understand the risks that cryptocurrencies will take. yield, often leading to losses and vulnerability. That is why she thinks the crypto industry should be regulated.
“I have always mentioned that cryptocurrencies are highly speculative assets that are very risky, if not worthless, as they are not based on any underlying asset to function. act as a safe financial instrument.”
The comments made by Christine Lagarde come as the crypto market is truly in a recession, with the two trend-leading coins Bitcoin and Ethereum down 50% from last year’s highs. At the same time, stablecoins are facing closer scrutiny from regulators worried about the dangers they could pose in the wake of the tumultuous LUNA-UST event.
Typically, during testimony before Congress last week, US Treasury Secretary Janet Yellen pointed to the demise of Terra as an example of how stablecoins could pose a threat to the nation’s financial system. Besides that, the European Union Commission is also backing a ban on stablecoins on a large scale. Tensions even escalated when the G7 countries called for accelerating global regulation of cryptocurrencies.
Returning to the main topic, Lagarde said that while she is skeptical of the value of cryptocurrencies, the introduction of the ECB’s digital Euro, which is said to be more energy efficient than Bitcoin, will turn a positive. . She asserted:
“The day we release the digital euro, any coins traded will be guaranteed by the ECB. Central banks are the ones behind supporting them.”
In addition, the ECB President also mentioned monetary policy, once again signaling that the ECB is ready to raise interest rates in July to combat the inflation raging in the euro area. For her part, Lagarde further shared that she herself does not hold any crypto assets. Interestingly, however, one of her sons is a “genuine” crypto investor.