European Central Bank insists cryptos not a plus for global economy, but ‘highly speculative, suspicious’

*Christine Lagarde, President of European Central Bank (ECB), again, has declared that cryptos are ‘highly speculative, suspicious occasionally, and high intensity in terms of energy consumption’

Emmanuel Akosile | ConsumerConnect

In its definitive response to the crypto operations and transactions in economies around the world, the leadership of the European Central Bank (ECB) has declared that cryptocurrencies are not currencies.

Christine Lagarde, President of ECB, who stated this said that cryptos are “highly speculative, suspicious occasionally, and high intensity in terms of energy consumption.”

Largade also discussed the need for stablecoin regulation and central bank digital currencies (CBDCs), Bitcoin.Com report said.

Christine Lagarde, President of ECB

She was reported to have shared her view on cryptocurrency, stablecoins, and Central Bank Digital Currencies (CBDCs) in an interview with Carlyle Group Co-founder David Rubenstein, published Thursday, September 16.

When asked whether “cryptocurrencies are a plus for the global economy” or whether it is too early to tell, the ECB Chief promptly replied, saying, “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.”

Lagarde also noted: “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.”

In respect of stablecoins, the President of ECB stated: “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.”

On the subject of Central Bank Digital Currencies, she said: “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.

“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,” Lagarde stressed.

When also asked whether the ECB’s CBDC would be “to the exclusion of paper currencies or it would be side by side”, 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.”

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