- Christine Lagarde, a former IMF President, who is now President of the European bank says that cryptocurrencies are useless
- Lagarde said that digital currencies are based on no tangible assets and therefore prone to risks due to their lack of peg
- She called on world leaders and policy makers to come up with policies to protect investors who are taking risks investing in cryptos
Ex-President of International Monetary Fund (IMF) and now the President of European Central Bank, Christine Lagarde says cryptocurrencies are not worth anything.
She said in an interview with a Dutch talk show, ‘College Tour’ on Sunday that cryptos are not based on any tangible assets, saying that there is no underlying anchor for safety for investors.
Lagarde wants policymakers to protect investors
She called on policymakers across the globe to put rules in place to protect newbies making huge bets on digital assets.
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Cryptos have taken a hit across the world this year with the largest of them, Bitcoin shedding more than half of its value since it got to an all-time high in November last year.
Lagarde said that she worried about people who think it is a reward but have no understanding of the risks and thereby lose everything, saying that is why she thinks it should be regulated.
Used for money laundering and sanction evasion
The erstwhile IMF boss’ distrust of cryptos is not new. CNBC has reported that she had raised concerns about the environmental effects of digital currencies and their possible use in money laundering and sanctions evasion.
Recently, there has been heightened scrutiny of the crypto industry after investors lost over $40 billion in the collapsed TerraUSD, a controversial stablecoin that was to be pegged to the dollar.
Central banks are working on their own digital currency alternatives to take advantage of the rapid development of digital currencies and to lure crypto users into using CBDCs.
Investors are in tears as over N3 trillion worth of bitcoin is wiped out in less than 24 hours
Legit.ng has reported that cryptocurrency investors suffered a major blow on Saturday after Bitcoin, other coins dropped in value by over a billion dollars.
This happens as global investors sold off their coins to settle for secure investment options as Christmas day neared.
Bitcoin the largest cryptocurrency by market value, plunged by 31.6% from the year’s high of $69,000 reached on Nov. 10.