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.

Leave a Reply

Your email address will not be published.

Related

Crypto.com Removes Cryptocurrencies from Earn Program

The current turmoil in the cryptocurrency market has forced a number of companies in the space to shift their strategy and come up with new approaches that can help them pull through the downtrend. Crypto.com is also doing the same as it announced that they are making changes to their rewards program called Crypto Earn. […]

A Particular Even May Help Recover Shiba Inu’s Price

The trading price of Shiba Inu (SHIB) experienced a gigantic plunge that was triggered due to the recent bloodbath of cryptocurrency. SHIB Bleeds Badly As the cryptocurrency industry suffered a bloodbath, the trading price of Shiba Inu experienced an even worse situation. SHIB’s trading price reportedly suffered double-digit losses. Despite suffering huge losses, the analysts […]

Price of Bitcoin Suffered another Dip Due to Cypherpunk Holdings

The price of Bitcoin (BTC) ended up experiencing a dip and it came down to $20,200. Bitcoin’s price dipped due to a strong selling that was nothing less than a bloodbath. A great sell-off activity was recorded for Bitcoin that was triggered by multiple institutions. Even the investment firms ended up selling Bitcoin on a […]

Stocks Slip and Yields Ease in Light of Powell’s Comments

On Wednesday, global indexes saw stocks edge lower for the most part, while Treasury yields eased, as investors were taking in the comments of Jerome Powell, the Chairman of the US Federal Reserve. He said that while there was certainly a risk of the economy slowing down too much because of aggressive hikes in interest […]

Asia-Pacific Stocks Gain with Investors Weighing Economic Concerns

On Tuesday, shares in the Asia-Pacific region climbed higher, as investors were weighing the economic concerns. Most indexes record gains The Hang Seng index in Hong Kong had been trading at a loss but rose 0.7% in the last hour of trading. There was also a 0.73% gain in the Hang Seng Tech index. On […]