The President of the European Central Bank, Christine Lagarde, described the cryptocurrency as “worthless” in an interview. Lagarde, who is consistently negative about cryptocurrencies, reiterated her view, claiming that they should be “based on nothing” and tightly regulated. Lagarde went on to argue that investing in Bitcoin and the altcoins could leave people “terribly disappointed” as the industry lacks proper rules. The comments from the ECB President and French politicians come amid an intense sell-off in crypto markets that began in early May.
Lagarde’s comments on crypto assets were shared on Dutch TV show College Tour, where she addressed an audience made up mostly of college students. “I’ve been saying all along that crypto assets are highly speculative, very risky assets. If you want to invest there, the choice is yours,” she responded to a question about investing as a young person.
“But what really worries me when it comes to crypto assets is that these investments are being made by people who have their eyes open to the fact that they can lose everything.”
“My very humble assessment is that it’s worth nothing, it’s not based on anything, there are no underlying assets to act as a safety anchor. The day we launch the Central Bank Digital Currency (CBDC), every digital euro will – I guarantee will. So the central bank will be behind it and I think it’s very different than a lot of these things.”
Last year, Lagarde said bitcoin was used for “reprehensible” money laundering activities. The French banker and politician has repeatedly pushed for stricter regulations for cryptocurrencies within the EU and has criticized Bitcoin’s energy consumption.
However, Lagarde’s cautionary tale had a twist. The ECB chief said she is “following” the fate of cryptocurrencies “very carefully” as her son defied her advice and invested in tokens. “He’s a free man,” she added. Lagarde denied owning any coins, stating she wanted to “practice what I preach”.
However, she added, “The fact that my son is investing in bitcoin doesn’t change my opinion of whether or not bitcoin is money.”
Cryptocurrency is an unregulated digital currency, not legal tender and is subject to market risks. The information provided in this article is not intended to and does not constitute financial advice, trading advice, or any other advice or recommendation of any kind offered or endorsed by NDTV. NDTV is not responsible for any loss arising from any investment made on an accepted recommendation, forecast or other information contained in this article.