European Central Bank President Christine Lagarde called the cryptocurrency ‘useless’ during an interview. Lagarde, who has consistently taken a negative stance on cryptocurrencies, reiterated his view, claiming that they are “based on nothing” and should be strictly regulated. Lagarde further argued that investing in bitcoin and altcoins could leave people “very disappointed” because of the lack of proper regulations in the industry. The comments from the ECB chairman and French politicians come on the back of a sharp sell-off in crypto markets that began in early May.
Lagarde’s comments on crypto-assets were shared on the Dutch television show College Tour, where she was addressing an audience of mostly students. “I have always said that crypto assets are highly speculative, very risky assets. If you want to invest there, it is your choice,” she said in response to a question about investing as a young person.
“But when it comes to crypto assets, what really worries me is that those investments are made by people with their eyes wide open about the fact that they could lose it all.”
“My very humble assessment is that it is nothing, it is based on nothing, with no inherent asset to act as an anchor of security. The day we have Central Bank Digital Currency (CBDC) Outside, any digital euro – I’ll guarantee. So, the central bank will be behind that and I think it’s very different from a lot of those things.”
Last year, Lagarde said that Bitcoin was being used to conduct “reprehensible” money laundering activity. The French banker and politician has repeatedly emphasized stricter cryptocurrency regulations within the European Union and criticized bitcoin’s energy consumption.
However, there was a twist in Lagarde’s cautionary tale. The ECB chief said she “follows” the fate of cryptocurrency “Very carefully” because his son opposed his advice and invested in the token. “He is a free man,” she said. Lagarde denied owning the coins and explained that she “wanted to practice what I preach.”
However, she adds, “The fact that my son invests in bitcoin doesn’t change my view of whether bitcoin is money or not.”
Cryptocurrency is an unregulated digital currency, is not legal tender and is subject to market risks. The information in this article is not intended to be financial advice, trading advice or any other advice or a recommendation of any kind offered or endorsed by NDTV. NDTV shall not be liable for any loss arising out of any investment based on any alleged recommendation, forecast or any other information contained in the article.