ECB President Shares ‘Warning’ for Crypto Industry
Taking a sharp stance about the fast-growing crypto industry, the honorable President of the European Central Bank (ECB), Christine Lagarde, has warned investors against crypto use. The spearhead of the notable banking institute advocated that virtual currencies should not be considered as a parallel asset class. Rather, they should be recognized as a highly speculative and suspicious financial currency cluster. With her skeptic take on cryptocurrencies, Lagarde has undoubtedly shocked investors who are happy with the industry’s growth presently.
Christine shared her views on cryptocurrencies, stating that there is a need to categorize these assets into different categories. They can be defined as assets that are highly speculative, suspicious sometimes, and those with high energy consumption requirements. She emphasized that cryptos are not currencies even though they claim to be so.
Where the global economy came at a standstill for almost the entire 2020 due to the COVID-19 outbreak, cryptocurrencies like Bitcoin climbed the success ladder. The price of top-tier cryptocurrencies surged dramatically as investors began to see the industry as a potential source of quick income. In April, the market value of BTC touched $65,000 for each token, making it a popular choice for retail investors. The coin is currently rolling at a $50,000 value, which is still higher in comparison to other financial tools.
Tokens like Ethereum’s ETH, Ripple’s XRP, Dogecoin, Binance’s BNB, Solana, etc. are also enjoying a price rise as the crypto market continues to reach new heights every day. People are confident that the industry will grow manifold times in the future. Therefore, an early investment can reap good results.
During the interview, Christine praised stablecoin projects like Tether. Stablecoins are virtual currencies pegged against fiat or real-world assets. She even acknowledged the potential of Central Bank Digital Currencies or CBDCs that have become eye candy for regulatory authorities across the globe, especially the USA and China. One must not forget that Lagarde has been an important catalyst in ECB’s digital Euro project that was recently launched as a competitor to Bitcoin and Facebook’s Diem stablecoin. The chief elaborated that stablecoins should be duly regulated and the CBDC issue should be considered keenly to meet the demands of users.