comscore Cryptocurrencies are worth nothing and should be regulated to protect people, says Chief of prominent bank
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Cryptocurrencies are worth nothing and should be regulated to protect people: European Central Bank Chief

Recently, Reserve Bank of India (RBI) governor Shaktikanta Das cautioned against the use of cryptocurrencies in India saying that the virtual currency could impact the financial stability of the country.

Christine Lagarde

Cryptocurrencies are worth nothing and should be regulated to protect people: European Central Bank Chief


European Central Bank President Christine Lagarde criticized cryptocurrencies, saying they are “worth nothing,” and should be regulated to protect people. In a Dutch student-led interview program, Lagarde said: “What I’m really concerned about when it comes to crypto assets is that those investments be made by people who have their eyes wide open about the fact that they can lose it all.” Also Read - UPI users will soon be able to link credit cards for online payments

As per Coinmarketcap data, the global crypto market capitalisation went down by 5.3 per cent to $1.2 trillion as of 8.50 am. However, the global crypto volume was up by a massive 45 per cent to $101.7 billion. Also Read - Bitcoin miners are losing 75 percent of their earnings to electricity bills

“I’ve said all along that crypto assets are highly speculative, very risky assets. If you want to invest there, it’s your choice,” she said in response to a question about investing as a young person. Also Read - India ready with consultation paper on cryptocurrencies: Economic Affairs Secretary

Lagarde has expressed her reservations over cryptocurrencies in the past, calling for more regulation on the most widely traded digital coin bitcoin.

“My very humble assessment is that it is worth nothing, it’s based on nothing, there is no underlying assets to act as an anchor of safety. The day when we have the Central Bank Digital Currency (CBDC) out, any Digital Euro – I will guarantee. So, the central bank will be behind it and I think it’s vastly different than many of those things.”

Recently, Reserve Bank of India (RBI) governor Shaktikanta Das cautioned against the use of cryptocurrencies in India saying that the virtual currency could impact the financial stability of the country. In an interview with CNBC TV18, Das also said that cryptocurrencies could also impact the macroeconomic stability of the country.

“This [crypto] is something whose underlying [value] is nothing. There are big questions on how do you regulate it. Our position remains very clear, it will seriously undermine the monetary, financial, and macroeconomic stability of India,” the governor said, as reported by Gadgets 360.

The RBI governor also said that if cryptocurrencies had been regulated in India leading to Terra Luna, investors would have questioned the effectiveness of the law adding that RBI and the government were ‘in sync’ as far as regulating cryptocurrencies was concerned. “We have conveyed our position to the government and they will take a considered call,” he added.

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  • Published Date: May 27, 2022 7:13 PM IST



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