Christine Lagarde, head of the ECB, stressed last night that crypto regulation was essential and that there should be an EU digital currency. Many of the industry’s most ardent critics are now able to take advantage of the fact that crypto markets may be confronted with another Crypto winter.
You can now add the president and CEO of the European Central Bank.
Christine Lagarde, chief of the ECB, stated emphatically on last night’s Dutch program ” College Tour,” that crypto assets have been proven worthless. It is based on nothing. It lacks an underlying asset that can act as an anchor of security.
She said that the recent market crash was not surprising, and added, “I have always maintained that crypto assets are extremely speculative, highly dangerous assets.”
Lagarde spoke before a group of college students, arguing that too many young people are looking for consistent returns in cryptocurrency but end up falling prey to market volatility.
She stated that crypto investments should be made only by people who are open to the possibility of losing everything. It’s down 20% since last week.
Lagarde surveyed the audience and heard one college student tell Lagarde that she had lost EUR7,000 ($7.470) in Cardano. She sighed, “That hurts.”
Nevertheless, the chief of the ECB isn’t interested to ban crypto trading in the European Union.
She believes regulation is the solution to the problem. She stated, “If you wish to invest there it’s your decision.” However, she stated that “I believe that this should be regulated …..” Investors should be aware. It is a very risky asset.
