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President of the European Central Bank, Christine Lagarde: “Cryptocurrencies are not currencies, period”

The president of the European Central Bank (ECB), Christine Lagarde, has been quite critical about cryptocurrencies.

President of the European Central Bank, Christine Lagarde: "Cryptocurrencies are not currencies, period"

President of the European Central Bank, Christine Lagarde: “Cryptocurrencies are not currencies, period”

In September 17, in an interview with Carlyle Group co-founder David Rubenstein, she reiterated that for her cryptocurrencies are not currencies, adding that they are “highly speculative, occasionally suspicious and of high intensity in terms of consumption of Energy”.

She also discussed the need for a regulation of stablecoins and central bank digital currencies (CBDC).

Lagarde was asked if “cryptocurrencies are an advantage for the global economy” or if it is too early to say.

The head of the ECB responded quickly:

“Cryptos are not currencies, full stop. Cryptos are highly speculative assets that claim their fame as currency, possibly, but they’re not. They are not.”

And continued:

“I think we have to distinguish between cryptos that are those highly speculative, suspicious occasionally, and high intensity in terms of energy consumption assets, but they’re not a currency.”

Lagarde also talked about stablecoins:

“On the other hand, you have those stablecoins that are beginning to proliferate, which some big techs are trying to promote and push along the way, which are a different animal and need to be regulated, where there has to be oversight that corresponds to the business that they’re actually conducting, irrespective of how they name themselves.”.

Next, the bank president addressed the issue of central bank digital currencies, CBDC’s:

“And in all that you have the central banks who are prompted by a demand of customers to produce something that will make the central bank and central bank digital currencies fit for the century we are in, which is why we are not all looking at CBDC.”

She explained that:

“instead of having banknotes and cash in our pockets in our wallets, we can have exactly the same thing but in a digital form so all of us are working on this and certainly I was keen to push the issue, the CBDC issue, on our agenda because I believe that we have to stand ready for that.”

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He was also asked whether the ECB’s CBDC would exclude paper money or the two would be operating together, she replied:

“Side by side, because we want customers to have their preference. If they still want to hold those banknotes and cash, fine, and it should continue to be available and around.”

It is worth remembering that Lagarde said in January of this year that for her Bitcoin was a speculative asset. At the same time, the ECB has been working on the digital euro.

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