European Central Bank (ECB) President Christine Lagarde criticized the cryptocurrency space, claiming it “has no value” in a recent interview. He pointed out that cryptocurrencies consisting of Bitcoin and altcoins are full of speculation and risks. Here are the details…
Lagarde, Bitcoin and altcoins are not worth anything
European Central Bank President Christine Lagarde says crypto assets have no value. In an interview broadcast on Dutch television show College Tour on Sunday, Lagarde said, “I said all crypto assets are highly speculative, very risky assets. My humble assessment is that it’s not worth anything. It is not based on anything, there is no underlying entity to act as a security.”
The comments come as the crypto market is in broader decline. Earlier this month, Bitcoin lost 20 percent of its value in a single week. Lagarde said he has never invested in cryptoassets, but his son did and he himself was not so lucky. But Lagarde explained that a digital euro would be something entirely different. The central bank used the following statements about digital currencies:
The day we issue the central bank digital currency, any digital euro, I will guarantee it. So the central bank will be behind it. I think this is very different from any of these (cryptocurrencies).
Lagarde also spoke on monetary policy
Lagarde also touched on monetary policy, with the European Central Bank ready to raise interest rates in July to combat furious inflation in the eurozone signaled once again. However, it seemed to underestimate the chances of a move by 50 basis points, a more radical option that Dutch central bank governor Klaas Knot had recently introduced. Current market expectations see an increase of 25 basis points.
So far, nine countries central banks have launched digital currencies (most are located in the Caribbean). Ninety percent of countries in the world are working on their own CBDCs. Cryptocurrencies came under severe pressure this May, and Bitcoin dropped to $25,000 for the first time since December 2020 due to the collapse of the Terra ecosystem.
