European Central Bank President Says Crypto Is Worthless

European Central Bank President Christine Lagarde

Speaking on the Dutch talk show “College Tour”, the European Central Bank President Christine Lagarde gave her provocative opinion that cryptocurrencies hold no value whatsoever. “My humble assessment,” she said, is that they are “worth nothing.”

The Divisive Words

The interview aired Sunday, and according to Lagarde, there’s nothing in cryptocurrency to create an anchor of safety and serve as an underlying asset. She said that these digital tokens have no basis, which creates risk for anyone who invests in them. The bank president is worried that people will think cryptocurrency is going to reward them, but they may end up losing everything they’ve invested and end up with disappointment.

Lagarde called for regulation of the cryptocurrency industry to help protect people from some of the risk that is inherent in investing in the market. She pointed out instances where the crypto market has crashed, causing people millions of dollars in lost investments. One of the audience members in the show even mentioned losing over 7,000 euros from investing in Cardano.

Lagarde Says that if there was a digital currency approved by and backed by the Central Bank, she would have no problem guaranteeing that. The current digital currency marketplace offers no guarantees, though.

This isn’t the first time Lagarde has raised concerns about cryptocurrencies, as she has talked in the past about how digital currencies impact the environment. She is also noted the use of digital currency in money laundering schemes and tax evasion.

Does She Have a Point?

Lagarde’s comments come at a time when the cryptocurrency market is down compared to earlier in the year. Bitcoin has lost over half of its overall value compared to where it was in November. That was when Bitcoin had reached an all-time high, our site visitors will recall.

Many cryptocurrency tokens are currently running at rates far lower than the average last year, and the market is struggling to bounce back from the latest crash. There are continued calls for regulations from government officials all over the world, and it is only a matter of time before many governments start doing just that.

ABOUT THE AUTHOR See More
Timothy St. John
Financial Writer - European & US Desks
Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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