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ECB Chief Christine Lagarde: Cryptography is “not worth anything”

The European Central Bank is considering whether to issue its own digital alternatives instead of cash.

Olivier Mathis | AFP | Getty Images

European Central Bank president Christine Lagarde I don’t think cryptocurrencies are worth a penny.

“My very humble evaluation is that it’s not worth anything,” Lagarde said in an interview with the Dutch talk show “College Tour,” which aired on Sunday.

“It’s not based on anything,” she added. “There is no underlying asset that acts as a safety anchor.”

Lagarde called on global policy makers to put in place rules to protect inexperienced investors who make big bets on digital assets. Cryptocurrencies have plummeted this year, with the world’s largest Bitcoin erasing more than half of its value since its all-time high in November.

“I’m worried about those who think they’ll be rewarded, those who don’t understand the risks, those who lose everything, and those who are terribly disappointed. That’s why I think it should be regulated,” Lagarde said. He said.

One of the show’s audience said he lost 7,000 euros ($ 7,469) after buying the tokens. CardanoLagarde replied: “It hurts.”

The skepticism of the former International Monetary Fund chief’s cryptography is not new. She previously expressed her concerns about the environmental impact of digital currencies and the potential use of digital currencies in money laundering and sanctions avoidance.

Her latest comment is Strengthening scrutiny of the crypto market As regulators responded to fallout from the collapse of terraUSD, the controversial so-called stablecoin always meant to be worth $ 1.

Several central banks are working on their own virtual alternatives to cash in response to the rapid growth of digital currencies. The ECB is one of them. According to Lagarde, the digital euro is “significantly different” from private cryptocurrencies.

ECB Chief Christine Lagarde: Cryptography is “not worth anything”

Source link ECB Chief Christine Lagarde: Cryptography is “not worth anything”

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