Bitcoin and other cryptocurrencies have been deemed worthless by European Central Bank President Christine Lagarde.
The head of the European Central Bank (ECB) thinks that by regulating the industry, consumers would be less likely to risk their funds on cryptocurrencies.
“In my humble view, cryptocurrency is completely useless.” There are no underlying assets to act as a safety anchor,” she stated.
“I have consistently emphasised that these sorts of investments are very speculative and exceedingly hazardous,” Lagarde said.
Those who don’t understand the dangers, “who will lose everything,” and those who are “severely disillusioned” by digital assets are Lagarde’s greatest worry.
According to Lagarde, the comments were made during hard times for bitcoin markets, when major currencies like bitcoin had lost half their value in 2017.
Regulators throughout the world are also becoming more concerned about the hazards posed by cryptocurrencies.
Doubt has been voiced by several ECB officials. There are many members of the European Central Bank’s executive board among them. At the beginning of the year, he likened crypto assets to the subprime mortgage crisis of 2008.
Given that other experts in banking and finance have the same perspective, it is not unexpected that Lagarde said that she has never invested in a digital currency.
Despite this, the financial expert said that her son had invested in cryptocurrency and lost all of his savings.
However, Lagarde says she would support the creation of a Digital Euro (CBDC), the bloc’s Central Bank Digital Currency (CBDC) since the ECB will back it.
“I’ll assure you,” Lagarde added. “The day we get the central bank digital currency—any digital euro—I’ll be there.” “As a result, the Federal Reserve will support it. That, in my opinion, is very distinct from all of the preceding examples.
As Panetta has recently mentioned, the digital euro might be adopted as early as 2026, putting a date on its arrival. Due to the intensified involvement with stakeholders in the project’s review phase, the implementation phase may not begin until late 2023.
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