The head of the European Central Bank criticises crypto assets, claiming they are “worthless”
ECB president Christine Lagarde has stated her opinion on the value of cryptocurrency assets in an interview recently, and it’s obvious what she thinks.
According to a story in Politico, the president of the European Central Bank reiterated her position that crypto assets are exceedingly speculative and potentially risky investments in an interview that will run on Dutch television programme College Tour on May 22.
Throughout this whole process, I’ve made it clear that crypto assets are very speculative and extremely dangerous. My honest opinion is that it is of no value whatsoever. Nothing can be relied upon as a source of stability,” he says.
The G7 finance ministers and central bank governors met in Germany on May 19 and 20, respectively, to discuss the global economy. There was a lot of talk about the need for immediate regulation of crypto assets after the recent Terra (LUNA) scandals.
It was also said by Lagarde that the European Central Bank is prepared to boost interest rates in July as a means of controlling inflation.
As for the likelihood of a 50-basis-point rate increase, she looked to be attempting to downplay it, which was what Dutch central bank president Klaas Knot had just said.
In the meanwhile, Lagarde added, “we are going to pursue the route of ending net [bond] purchases and then, at some point in the future, we will raise interest rates.”
According to current projections, the European Central Bank’s asset-buying programme will expire early in the third quarter, which would allow for an interest rate hike in July. 50 basis points more money in your pocket! “I can’t tell you at this point in time,” she said.