The President of the European Central Bank, Christine Lagarde, claimed crypto-currencies are “based on nothing” and should be controlled to keep individuals from betting their life savings on them.
Lagarde told Dutch television that she is concerned about people “who have no grasp of the risks, who will lose everything and be tremendously unhappy,” which is why she believes the industry should be controlled.
The remarks come at a time when crypto markets are unstable, with digital currencies like Bitcoin and Ether down 50% from their highs last year. Regulators are scrutinising the asset class more closely, concerned about the risks it poses to the broader financial system.
Lagarde expressed scepticism about the value of bitcoin, contrasting it with the European Central Bank’s digital euro programme, which might be completed within the next four years.
She went on to say:
“My modest opinion is that it is worthless, that it is founded on nothing, and that there is no underlying asset to act as a safety net. I guarantee that when we have the central bank digital currency out, any digital euro, the central bank will back it, and I believe it will be radically different from many of those things.”
Other European Central Bank officials have already expressed their reservations. Executive Board member Fabio Panetta, for example, warned in April that crypto-assets are “creating a new Wild West” and linked it to the subprime mortgage crisis of 2008.
Do you agree with Legarde? Comment below.
Read more: Central Bank of Nigeria all set to allow users to pay bill and air ticket in eNaira
![Pinterest](https://pinterest.com/pin/create/button/?url=https://cryptoshrypto.com/european-central-bank-chief-claims-cryptocurrency-is-based-on-nothing-amid-crypto-bloodbath/&media=https://cryptoshrypto.com/wp-content/uploads/2022/05/1.-Eu-bank.jpg&description=The President of the European Central Bank, Christine Lagarde, claimed crypto-currencies are "based on nothing" and should){kind=link}