The Rising Debate : Cryptocurrencies Are Worth Nothing According to Christine Lagarde

Published on: 25 May 2022 08:20 AM
by KnowESG
Christine Lagarde - 3 September 2009
Source : Wikimedia Commons

Christine Lagarde announces her concern for investors investing in digital assets while cryptocurrencies are "worth nothing". She urges global policymakers to tighten cryptocurrency regulations.

This year, cryptocurrencies have shown their volatility more than ever, especially with Bitcoin -the most known and largest shedding more than half of its value from its highest records in November.

The European Central Bank President said in an interview with the Dutch talk show "College Tour" that aired Sunday, "My very humble assessment is that it is worth nothing."

"I’m concerned about those people who think it’s going to be a reward, who have no understanding of the risks, who will lose it all, and who will be terribly disappointed, which is why I believe they should be regulated," Lagarde said.

A member of the audience shared their experience with the token cardano, which made them lose 7,000 euros ($7,462), to which Lagarde replied, "That hurts". 

Despite the fact that her son seems to be very interested in cryptocurrencies and digital assets, Lagarde has not changed her mind about the potential dangers that could be related to these transactions, including money laundering and sanction evasion. However, she would encourage an initiative related to the digital Euro.

"The day when we have the central bank's digital currency, any digital euro, I will guarantee it," she said. "So the central bank will be behind it. I think that is vastly different from any of those things."

Lagarde also highlighted monetary policy, hinting once more that the ECB is prepared to raise interest rates in July to combat the eurozone's soaring inflation.

Source : CNBC, Politico