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Industry Insights
May 23, 2022

Lagarde says crypto is ‘worth nothing’ and should be regulated


Lagarde told Dutch television that she’s concerned about people “who have no understanding of the risks, who will lose it all and who will be terribly disappointed, which is why I believe that that should be regulated.”

The comments come amid choppy times for crypto markets, with digital currencies Bitcoin and Ether down 50% from last year’s peak. At the same time, the asset class is facing tougher scrutiny from regulators worried about the dangers it may pose to the broader financial system.

Lagarde said she’s skeptical of crypto’s value, contrasting it with the ECB’s digital euro—a project that may come to fruition in the next four years.

“My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as an anchor of safety,” she said.

“The day when we have the central bank digital currency out, any digital euro, I will guarantee—so the central bank will behind it and I think it’s vastly different than many of those things,” Lagarde said.

Other ECB officials have already voiced concerns. One is Executive Board member Fabio Panetta, who said in April that crypto-assets “are creating a new Wild West,” and drew parallels with the 2008 subprime mortgage crisis.

Lagarde said she doesn’t hold any crypto assets herself because “I want to practice what I preach.” But she follows them “very carefully” as one of her sons invested—against her advice. “He’s a free man,” she said.


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Industry Insights March 09, 2022 Industry Insights March 09, 2022 THE WHITE HOUSE: President’s Executive Order on Ensuring Responsible Development of Digital Assets THE WHITE HOUSE, March 9, 2022, US-President's Executive Order on Ensuring Responsible Development of Digital Assets. Within 120 days of the date of this order, the Secretary of the Treasury, in consultation with the Secretary of State, the Secretary of Commerce, shall establish a framework for interagency international engagement with foreign counterparts and in international fora to, as appropriate, adapt, update, and enhance adoption of global principles and standards for how digital assets are used and transacted, and to promote development of digital asset and CBDC technologies consistent with our values and legal requirements.  Industry Insights January 24, 2022 Industry Insights January 24, 2022 Bank Of England: Minutes of the CBDC Technology Forum – January 2022 Bank of England, Meeting Minutes of the CBDC Technology Forum, London, 09 February 2022 - The Member presentation concluded that the ledger-centric account model likely best met the requirements for CBDC. Industry Insights October 13, 2021 Industry Insights October 13, 2021 REUTERS: G7 finance leaders lay out guidelines for central bank digital currencies REUTERS, Oct. 13, 2021, at 8:54 p.m. - G7 Finance Leaders Lay Out Guidelines for Central Bank Digital Currencies - Group of Seven advanced economies said on Wednesday that any digital currency issued by a central bank must "support and do no harm" to the bank's ability to fulfil its mandate on monetary and financial stability, and must also meet rigorous standards.

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