European Central Bank President: Crypto Is A Speculative Asset That Claims To Be Currency, But It's Not!

European Central Bank condemns crypto (Cryptorank.io)

JAKARTA – The President of the European Central Bank, Christine Lagarde, called cryptocurrencies a speculative and suspicious asset. The European Central Bank has openly ridiculed cryptocurrencies because cryptocurrencies threaten their existence.

CryptoDaily mentions that cryptocurrencies hold the answer to a world ravaged by debt-based ponzi schemes called fiat currencies. Lagarde balked by saying that cryptocurrencies are not currencies.

When Lagarde was interviewed by Bloomberg TV about whether cryptocurrencies are a good thing for the global economy, she emphatically disagreed and called crypto just a speculative asset and not a currency.

“Cryptops are highly speculative assets that claim their fame as a currency, perhaps, but are not. Crypto is not (currency)!” Lagarde said.

The president of the European Central Bank also explained that his party is sometimes suspicious of crypto and launched a call by saying that crypto consumes very high energy consumption. Lagarde also alluded to crypto stablecoins or stable coins tied to the value of native currencies including USD Tether (USDT) and USD Coin (USDC). He called stablecoins a “different animal”.

“On the other hand, you have stablecoins that are starting to proliferate, that are trying to be promoted and driven by some big technology, which are different animals and need to be regulated where there has to be oversight,” Lagarde added.

In addition, Christine Lagarde revealed that the central bank will answer the needs of users by presenting a central bank digital currency or commonly called a CBDC. He mentioned that the digital money developed by the central bank would perfectly suit today's needs.

“This is why we are all now looking at CBDCs (Central Bank Digital Currencies), so that instead of having paper money and cash in our wallets, we can have the same thing but in digital form,” he said.

In contrast to cryptocurrencies, he explained that the CBDC digital money would go hand in hand with a physical cash system. Therefore, users can determine for themselves which one is more suitable for use in everyday life.

However, Lagarde did not mention how CBDC lags behind the existing cryptocurrencies. The digital currency developed by the central bank seems to be developed to stem the rate of cryptocurrencies, as did China, which launched its Digital Yuan some time ago.