ECB President Christine Lagarde’s Comments On Crypto Spark Criticism

May 26, 2022 9:22 pm

ECB President Christine Lagarde recently made comments that crypto is worth nothing on a talk show which sparked a negative response from the crypto community.

The comments from Lagarde come during a time when the crypto market is experiencing a slump which was likely caused by the UST stable coin clash as well as overall market conditions.

This was not the first time that Lagarde made her stance on crypto well known and many responded to that stance with concerns about the euro itself.

Sheila Warren, CEO of the Crypto Council for Innovation, reaffirmed that the new digital economy will likely involve digital currencies and CBDCs in the future.

CoinTelegraph reports:

Meanwhile, crypto analyst Lark Davis took the opportunity to react to Lagarde’s remarks. Quoting the ECB president, Davis tweeted that instead of describing crypto, she just “described the $euro” because it’s “printed out of thin air.”

Sharing a video showing Lagarde admitting that her son trades cryptocurrencies, Byzantine General called her a dinosaur. Byzantine General tweeted, “How do these dinosaurs not realize it’s over for them. Why keep fighting the future until your last breath.”

Earlier this year, the European Commission announced that it’s preparing a digital euro proposal for 2023.

The ECB is expected to have a prototype by the end of 2023, and if everything goes well, it may be issued in 2025.

Lagarde continues to argue that crypto is worth nothing due to the fact that there is no underlying asset behind them to back up their worth.

She then continued to warn against dealing with digital assets as they were seen to be speculative assets.

With that being said, Lagarde has not mentioned that there would be an outright ban against crypto trading in the European Union.

Legislation on creating a digital euro is expected to be passed sometime in 2023 with actually implementation to be completed within 4 years.

Decrypto.co reports:

“The day when we have the Central Bank digital currency out–any digital euro–I will guarantee it,” Lagarde told the audience last night. “So the Central Bank will be behind it. And I think that’s vastly different from any of those things [crypto].”

When the ECB polled EU citizens about a digital euro last year, the majority of respondents said they would like the currency to run on a blockchain.

A majority also stated privacy to be a priority in the currency’s construction and desired “a limited or no role for intermediaries” in its operation.

When it comes to designing CBDC for the EU region, it was revealed in that past that Ripple had also acted as an advisor due to Ripple’s expertise in creating CBDC solutions.

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