ECB Chief Lagarde Calls Crypto 'Suspicious and Speculative' Assets, Not Currencies

ECB Chief Lagarde Calls Crypto 'Suspicious and Speculative' Assets, Not Currencies

During her recent appearance on "The David Rubenstein Show: Peer-to-Peer Conversations”, governor of the European Central Bank, Christine Lagarde, stated that “cryptos are not currencies. Full stop.”

Lagarde believes that stablecoins can have more trust, since they are pegged to fiat and are promoted by tech companies. However, she favors Central Bank Digital Currencies (CBDCs) best of all, planning to launch one in the European Union.

ECB chief slams crypto, says stablecoins are a different animal

Answering the question of the host about her attitude towards cryptos, Christin Lagarde claimed that cryptos are not currencies but are rather highly speculative, occasionally suspicious and highly energy consuming assets, hinting at Bitcoin that uses the Proof-of-Work mining algorithm.

She also pointed out that stablecoins, that are being promoted by large tech companies and are related to the business conducted by them, are proliferating now and have to be regulated. However, earlier this month, Lagarde also stated that stablecoins are assets and not currencies.

Lagarde believes in the future of CBDCs

According to the ECB chief, Central Banks these days are prompted by their customers to create money that would fit the current century and this is CBDCs – Central Bank Digital Currencies.

Lagarde stated that the ECB is working hard to push CBDCs on the agenda, so that they can replace cash. However, she added that digital currencies and habitual banknotes will go side by side, so that consumers have a choice as to the type of money they want to use – a regular Euro or a digital one.

ECB is investigating CBDCs

As reported by U.Today in the summer, in July, the ECB began the investigation of the digital Euro project. The European Central Bank is looking into the matter to avoid all traps and pitfalls that may occur while launching a digital Euro. This phase will take approximately two years, according to the ECB press-release.

Back then, the press release also stated that the digital Euro will be greener than Bitcoin.