September 20, 2021

This Is Why Lagarde's Latest Views On Crypto Are Unpopular!

 ECB President Christine Lagarde came forward to give her latest views on crypto. In an interview with The David Rubenstein Show. In the interview,

Lagarde stressed that it is still too early to define a global goal for crypto. Lagarde claims the field of decentralization is supported by highly speculative asset classes.

Crypto is not a currency, notes Lagarde.Lagarde also called for a classification between crypto that is highly speculative, suspicious and highly intensive from energy consumption assets.

The ECB president also discussed issues related to stablecoin. Lagarde stressed that Stablecoins is growing rapidly. Even so, he personally argues that it must be regulated because it is under the control of private business.

However, when talking about CBDC, Lagarde’s tone starts to differ. He argues that the CBDC was only launched as a relevant successor in the technology era and claims that the CBDC is a centralized digital currency. He also confirmed that the CBDC is not mandatory and will move in tandem with the fiat currency.

Lagarde is still skeptical with bitcoin even though the acceptance of the cryptocurrency has become more widespread lately. Institutional investors and large corporations are starting to invest in bitcoin to balance their balance sheets. However, European Central Bank (ECB) President Christine Lagarde does not see such a future in central bank financial institutions.