Christine Lagarde says that cryptocurrencies are “worthless”
The president of the European Central Bank (ECB), Christine Lagarde, stated that “cryptocurrencies are worth nothing, they are not based on anything, and there is no underlying asset that acts as a security anchor.”
Lagarde warned about the risks involved in cryptocurrencies, especially for those who do not know the details of how they work.
During an interview with broadcasters in the Netherlands, Lagarde stated that “my humble opinion is that cryptocurrencies are worth nothing, they are not based on anything, and there is no underlying asset that acts as a security anchor” in the operations carried out with cryptocurrencies, DW reported.
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Such operations should be regulated
The ECB president also said that such operations should be regulated because many people do not understand the risks involved, "they will lose everything and be disappointed" in the end with cryptocurrencies.
During the interview, Lagarde revealed that she herself does not own any crypto assets although one of her sons does. "He is a free man," she said Lagarde regarding her son's decision.
He also confirmed that the European Central Bank maintains a project aimed at creating a digital euro as a currency. However, he reiterated that the digital euro could start circulating in just four years.
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Thanks to the support of the ECB, the functioning of the future European currency "will be very different" from that of cryptocurrencies.
Cryptocurrencies
A cryptocurrency, cryptocurrency, or cryptoasset is a digital medium of exchange that uses strong cryptography to secure transactions, control the creation of additional units, and verify the transfer of assets using distributed ledger technologies.
Cryptocurrencies are a type of alternative currency or digital currency. There is controversy that cryptocurrencies have to be decentralized control or centralized currencies by central banks or another entity, leaving these entities and/or central banks without any function.
bitcoins- cryptocurrencies It could be the case that it will be adopted massively and become fiduciary currency for the entire planet. Cryptocurrencies generally use decentralized control rather than a central bank digital currency (CBDC).5
Control of each currency works through a decentralized database, usually a blockchain, which serves as a public financial transaction database.
The first cryptocurrency that began to operate was Bitcoin in 2009,6 and since then others with different characteristics have appeared, such as Litecoin, Ethereum, BNB (Binance), Bitcoin Cash, Ripple or Dogecoin.
Miami Daily
Author: MiamiDiario PD 2:59 pm