Christine Lagarde, the president of the European Central Bank, has warned that cryptocurrencies are worthless and should be regulated.
She believes that the sector should be regulated and that this will prevent people from gambling on cryptocurrencies with all their savings.
Lagarde Concerns Those Who Don’t Understand the Risks of Crypto
“My extremely humble opinion is that cryptocurrency is worthless. It is based on nothing and there are no underlying assets to act as a safety buoy,” she said.
Lagarde continued: “I have always argued that these types of assets are highly speculative and extremely risky.” The president of the ECB made these statements during a College Tour broadcast in the Netherlands. She also shared here that she is concerned about those who don’t understand the risks and “may lose everything.”
Cryptocurrencies are receiving increasing attention from global regulators, who often cite dangers to the financial system. Other ECB officials have expressed doubts about cryptocurrencies before. One of them is Fabio Panetta, member of the Executive Board of the ECB. In April, he stated that crypto assets are “creating a new Wild West”.