European Central Bank (ECB) President Christina Lagarde said that cryptocurrencies are not currencies, adding that these assets are “highly speculative, at times questionable and very energy-intensive.” He also discussed the need for stablecoin regulation and central bank digital currencies (CBDC).
Lagarde: “Cryptocurrencies are not currency. Point. ”
ECB President Christine Lagarde shared her views on cryptocurrency, stablecoins and central bank digital currencies (CBDCs) in an interview with Carlyle Group co-founder David Rubenstein published on Thursday. Lagarde was asked whether “cryptocurrencies are positive for the global” or whether it is too early to ask such a question. The ECB President responded with the following sentences:
Cryptos are not currencies, period. Cryptos are highly speculative assets, possibly claiming to be currency. But they are not currency. They are not. I think we should distinguish between energy-intensive, speculative, occasional questionable cryptos; but they are not currency.
Lagarde comments on stablecoins and central bank digital currencies
Lagarde also started discussing stablecoins. About stablecoins “On the other hand, there are stablecoins that are starting to proliferate, which is a different kind and needs to be regulated that some big technologies are trying to promote and advance. “Regardless of what they call themselves, there has to be an oversight that corresponds to the work they actually do.”
The ECB President then touched on the issue of central bank digital currencies. Cryptocoin. com
As we reported , the ECB started the research process for the digital euro in mid-July. “There are also central banks that act to produce something with customer demand,” Lagarde said. Central bank digital currencies fit the century we live in; that’s why we’re reviewing CBDCs,” he said.
Instead of having notes and cash in our wallets, we can achieve something digital but exactly the same. So we’re all working on this, and I’m definitely keen on pushing the topic, the CBDC issue. I believe we should be prepared for this.