Christine Lagarde, The President of ECB (European Central Bank), says Digital Assets are highly suspicious, speculative, and definitely not currencies. She added that high energy consumption is also the main problem. The role of central bank digital currencies (CBDCs) was also discussed by the ECB president yesterday.
Despite being adopted by a large portion of the world population, crypto is facing a lot of resistance from governments officials and banks. In my opinion, the main reason for this resistance is because crypto-threats the existing financial system and offers a far more superior financial system in which these officials will not have any role.
Digital Assets are highly suspicious:
Yesterday, the President of ECB was in an interview with David Rubenstein, co-founder of Carlyle Group, where she expressed her views about crypto, stablecoin, and Central Bank Digital Currencies (CBDCs). Her opinion about crypto was that Digital Assets are highly suspicious, speculative, have too much energy consumption, and definitely not currencies.
She replied about a question, that crypto coins are good for the global economy or too early to tell, in this way:
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 has reservations about stablecoin that they are a different kind of animal run by the big techs and need to be regulated. Lagarde further stepped towards the CBDCs and shared her views about the central bank currencies. She said that she agrees with the idea of CBDCs as these will be alternatives to the banknotes and cash.
Digital Assets are suspicious and stablecoin needs to be regulated, but CBDCs are perfect for currency in the future. For further interesting articles click here.