Posted 3 months ago | by @devadmin
European Central Bank (ECB) President Christine Lagarde has stated that Bitcoin is “highly speculative” and needs to be regulated.
Speaking at the Reuters Next conference on Wednesday, Lagarde said Bitcoin has conducted “some funny business and some interesting and totally reprehensible money laundering activity.”
“And there has to be regulations and this has to be applied and agreed upon,” at a global level, said Lagarde.
“If there is an escape, that escape will be used,” she said. “So I think […] global cooperation and multilateral action is absolutely needed, whether it is initiated by the G-7, moved into the G-20 and then enlarged […] The FATF [Financial Action Task Force] is clearly an organization that has expanded in that respect.”
Lagarde also commented on the creation of a digital Euro expressing, that “there will be a digital euro, hopefully in no more than five years.” The ECB president has previously bashed Bitcoin, Libra, and stablecoins as “risky assets” while praising a digital Euro.
Lagarde before added that stablecoins and other cryptocurrencies present serious risks to the competitiveness and technological advancement for governments.
“If widely adopted, stablecoins could threaten financial stability and monetary sovereignty. For instance, if the issuer cannot guarantee a fixed value, or if they are perceived as being incapable of absorbing losses, a run could occur. Additionally, using stablecoins as a store of value could trigger a large shift of bank deposits to stablecoins, which may have an impact on banks’ operations and the transmission of monetary policy,” Lagarde previously wrote.
“A properly designed digital euro would create synergies with the payments industry and enable the private sector to build new businesses based on digital euro-related services. A digital euro would also be an emblem of the ongoing process of European integration and ultimately help to unify Europe’s digital economies,” Lagarde added at the time.
Lagarde also additionally said in 2017 as the IMF director that Bitcoin “puts a question mark on the fractional banking model we know today.”
Bitcoin is currently trading at [FIAT: $34,491.40] DOWN -1.7% in the last 24 hours according to Coingecko at the time of this report.