Christine Lagarde, President of the European Central Bank (ECB), said in an interview on May 22 that cryptocurrencies worth nothing “. This statement comes against a backdrop of uncertainty for the crypto industry. On May 12, the stablecoin TerraUSD and Luna, the cryptocurrency it was backed by, crashed. They brought with them the drop of almost 30% of bitcoin and ether.
ECB President doesn’t really like cryptocurrencies
Questioned by Dutch television, Christine Lagarde made clear cut remarks vis-à-vis these digital currencies. For her, it is important to make people who wish to invest in this area aware of the risks involved. ” What concerns me when we talk about cryptocurrencies is to make sure that these investments are made by people who are aware that they can lose everything. I am worried about those who think they will necessarily win without understanding the risks, who will lose everything and who will be extremely disappointed. That’s why I think they need to be regulated “, she explains.
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For the President of the ECB, cryptocurrencies are not based on any basis to ensure the financial security of investors. ” These are very risky assets. My very humble assessment is that it is worth nothing. It’s not backed by anything, there are no underlying assets to act as a security anchor “, she said.
Where is the digital euro?
Christine Lagarde took advantage of the interview to promote the future digital euro. The project has been under consideration for years before being formalized in July 2021. It precise that “ the day we have central bank digital currency, any digital euro, I will guarantee it. So the central bank will be behind all of this. I think it’s very different [des cryptomonnaies] “.
During a speech held on May 20, Fabio Panetta, member of the ECB’s executive board, estimated that this digital asset will not arrive before 2026. For him, the field of cryptocurrency is the equivalent of a Far West. He warns of a possible collapse similar to that of the subprime crisis that occurred in 2008. If the release of this digital currency would upset the legislative framework of the European Union, it would not replace cash, but would serve as a complement.
Ironically, one of his sons invested in the cryptocurrency universe despite his warnings. For her part, Christine Lagarde claims not to hold cryptocurrencies in order to “ practice what she preaches “.