ECB’s President, Christine Lagarde, Says Crypto Assets Have No Worth
In an interview, Christine Lagarde, the head of the European Central Bank, made it quite plain where she stands concerning the value of digital assets.
Head Of ECB Label Cryptos As Worthless
According to a survey by Politico, the head of the ECB noted her position on crypto. The ECB head stated that digital assets are highly speculative and risky in the interview. As a result, she is against the use of crypto for investment. The Dutch tv-show College Tour will broadcast the meeting on the 22nd of May.
“As I have maintained throughout this discussion, cryptos are highly speculative and very dangerous investments. In my opinion, which is by no means authoritative, it has no worth. This is because it is built on nothing. Also, there are no underlying assets that can serve as an anchorage of safety,” she stated.
However, on the 19th and 20th of May, the ministers of finance and governors of the G7 came together. In the meeting, they discussed about the recent crisis in the crypto market. The goal of the meeting was to prepare a framework for the regulation of stablecoins.
ECB Getting Ready To Increase Interest Rates
She also tackled the issue of monetary policy, indicating that the ECB is willing to hike interest rates by July to tackle the skyrocketing inflation occurring inside the eurozone.
The European official avoided talking about the fifty basis point hike in interest rates. The President of Germany’s central bank, Klaas Knot, proposed this idea.
According to Lagarde, “The ECB will follow the road of ending net purchases first. After a while, the issue of interest rates will be tackled.
Sources state that the ECB’s asset-buying scheme will end early in Q3. This will clear the way for a hike in interest rates to take place in July. A rise of fifty basis points “is not something that I can tell you at this moment,” she said.
The ECB President is not the only antagonist of the crypto community. Other famous individuals have shown their aversion to digital currencies. Even the renowned billionaire, Bill Gate, has stated he has no Bitcoin. He believes that BTC has no value and will have no worth in the future.
However, supporters such as Michael Saylor continue to show massive support. The MicroStrategy CEO has been in support of BTC from the start. Recently, he stated the flagship currency would run into millions.