Christine Lagarde, President of the European Central Bank, Says Cryptocurrencies Are “Based on Nothing”

European Central Bank President Christine Lagarde Wants Cryptocurrency Regulation

Christine Lagarde, President of the European Central Bank, said cryptocurrencies were “not based on anything” and should be regulated to prevent people from risking their savings on them. Lagarde expressed concern about those who ignore the risks, and could do anything. She also encouraged governments around the world to take action to protect inexperienced investors making large bets on digital assets. Lagarde’s comments come at a time when cryptocurrency markets are fragile, with major digital assets such as Bitcoin and Ether falling more than 50% from their highs of last year.

During an interview with the Dutch chat show College visit A few days ago, Lagarde said in his “very humble assessment” that cryptocurrency was worth “nothing” and “backed by nothing”. She added that there was no underlying asset to function as a security anchor.

Lagarde’s lack of confidence in cryptocurrencies is nothing new. She has previously expressed concerns about the money laundering and sanctions evasion potential of digital currencies, as well as their impact on the environment.

On the chat show, when a member of the public mentioned losing 7,000 euros (around Rs 58,000) after buying the Cardano token, Lagarde said that it “hurts”.

Lagarde said she doesn’t own any cryptocurrency because she wants to practice what she preaches. That said, she added that she diligently follows the cryptocurrency market as one of her sons has invested in digital assets.

In reaction to the rapid expansion of digital currencies, several central banks, including the European Central Bank, are developing their own virtual alternatives to cash. According to Lagarde, a digital euro would be very different from private cryptocurrencies because it will have central bank support.

Lagarde said she doesn’t hold any crypto assets herself because “I want to practice what I preach.” But she follows them “very carefully” as one of her invested sons – against her advice. “He’s a free man,” she said.

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