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European Central Bank president pushes for crypto regulation

Wednesday 25 May 2022 14:10 CET | News

European Central Bank president Christine Lagarde has stated, according to Bloomberg, that crypto-currencies should be regulated to steer people away from speculating on them with their life savings.

The ECB president stated that she’s concerned about people who have no understanding of the risks, who will lose it all and who will be terribly disappointed. As Bloomberg later contextualizes, Lagarde’s comments come to the public discourse while digital currencies Bitcoin and Ether fell 50% from 2021’s peak. At the same time, crypto is facing higher scrutiny from regulators worried about the dangers it may pose to the broader financial system.

Lagarde said she’s skeptical of crypto’s value, contrasting it with the ECB’s digital euro -- a project that may come to fruition in the next four years.

Other ECB officials have already voiced concerns, according to Bloomberg. One is Executive Board member Fabio Panetta, who said in April 2022 that crypto-assets ‘are creating a new Wild West,’ and drew parallels with the 2008 subprime mortgage crisis.

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Keywords: digital euro, regulation, cryptocurrency, central bank
Categories: DeFi & Crypto & Web3
Companies: European Central Bank
Countries: Europe
This article is part of category

DeFi & Crypto & Web3

European Central Bank

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