Christine Lagarde, president of the European Central Bank (ECB), warned that cryptocurrencies are prone to money laundering. She agrees with Andrew Bailey, Governor of the Bank of England. Andrew Bailey recently stated that cryptocurrencies have no intrinsic value and that if they invest in cryptocurrencies, investors should be prepared to lose all their funds.
European Central Bank President Lagarde sees cryptocurrency as a “real risk” for investors
Christine Lagarde, President of the European Central Bank (ECB), spoke about cryptocurrencies in a webinar hosted by the European University Institute on Friday. she says:
Cryptocurrency-these two things can’t be well integrated. In this regard, I totally agree with Dr. Bailey’s conclusion.
Lagarde further pointed out: “Some crypto assets…people can invest freely and take full risk. In my opinion, some cryptocurrencies are prone to money laundering activities.” She did not mention any cryptocurrency names.
When asked whether the European Central Bank competed with cryptocurrencies with the digital euro, Lagarde said that cryptocurrencies are different from stablecoins and central bank digital currencies (CBDC). By investing in cryptocurrencies, the President of the European Central Bank emphasized that “this is a real risk that people are taking”, citing the words of Andrew Bailey, President of the Bank of England.
The Governor of the Bank of England, Andrew Bailey, stated at a press conference on Thursday that cryptocurrencies “have no intrinsic value.” However, he pointed out: “This does not mean that people do not give them value, because they may have external value. But they have no internal value.”
The Governor of the Bank of England, who has long been skeptical of cryptocurrencies, reiterated:
I will say it bluntly again. Only buy them when you are ready to lose all your money.
The Financial Conduct Authority (FCA), the British financial regulator, also stated in January that “investing in crypto assets or related investments and loans usually risk investors’ money and take high risks… if consumers invest in them They should be prepared to lose all their money.”
This is not the first time Lagarde has expressed concerns about money laundering related to cryptocurrencies. In January, the President of the European Central Bank stated that cryptocurrency is “a highly speculative asset with some interesting businesses and some interesting and completely condemned money laundering activities.”
Her comments angered many in the crypto community. For example, Daniel Lacalle, the fund manager and chief economist of Tressis Gestion, replied: “When we all know that the vast majority of money laundering activities in the world are carried out in legal tender, especially the U.S. dollar and the euro, this is absolutely outrageous. .”
What do you think of Lagarde’s comments on Bitcoin and other cryptocurrencies? Let us know in the comments section below.
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