ECB president’s anti-crypto statements spark public backlash
Christine Lagarde, the current President of the European Central Bank caused a backlash after a recent comment on crypto. According to her cryptocurrencies were not based on any tangible assets and needed stringent regulation. This, to prevent people from losing their savings by investing in them. She also expressed a concern that many could be unaware of the risks and stood to lose everything.
This statement comes at a time when the financial markets and the crypto sector are already shaky. Major crypto players like Bitcoin and ETH have lost more than 50% of their value since their highs in 2021. Christine Lagarde also stated that this was her humble opinion and that crypto didn’t have an underlying anchor asset to make it safe. Her lack of faith in crypto as a mode of investment is not new. In the past, she also expressed her fear of digital assets being used for money laundering and other such activities.
She also said she felt bad when she heard stories of people losing money after investing in crypto. She practices what she preaches by not investing in the crypto markets even if her son chooses to do so. Considering the current state of the financial markets, her skepticism and statements have created a furore in the markets and amongst analysts as well.
Ms. Lagarde believes that a CBDC is a better alternative to crypto as it will be backed by the central bank. She faced a backlash from the crypto community with people expressing their disappointment and unhappiness.