As crypto markets show signs of stagnation, Lagarde reminded the world of her stance on cryptocurrencies. According to her, cryptocurrencies are “worth nothing” because the assets are “based on nothing.” Additionally, she expressed concerns for those who invest in crypto and called for regulation.
Responding to these comments, the crypto community expressed their sentiments. Sheila Warren, CEO of the Crypto Council for Innovation, wrote that she’s disappointed, but not surprised, to hear these comments. According to Warren, the “new digital economy will run on a combination of digital currencies, including crypto, stablecoins and CBDCs [central bank digital currencies].”
Meanwhile, crypto analyst Lark Davis took the opportunity to react to Lagarde’s remarks. Quoting the ECB president, Davis tweeted that instead of describing crypto, she just “described the $euro” because it’s “printed out of thin air.”
ESB President Christine LaGarde said “My very humble assessment is that [#crypto] is worth nothing, it is based on nothing—there is no underlying asset to act as an anchor of safety.”
Ummmm, I think she just described the $euro
Printed out of thin air pic.twitter.com/Mq25reXtNL
— Lark Davis (@TheCryptoLark) May 25, 2022
Sharing a video showing Lagarde admitting that her son trades cryptocurrencies, Byzantine General called her a dinosaur. Byzantine General tweeted, “How do these dinosaurs not realize it’s over for them. Why keep fighting the future until your last breath.”
Related: WEF 2022: SWIFT probably won’t exist in 5 years, says Mastercard CEO
Earlier this year, the European Commission announced that it’s preparing a digital euro proposal for 2023. The ECB is expected to have a prototype by the end of 2023, and if everything goes well, it may be issued in 2025.
In April, ECB executive Fabio Panetta gave some details on the central bank’s research into central bank digital currencies (CBDCs). According to Panetta, CBDC issuance may “become a necessity.” However, the executive noted that these digital currencies “should not become a source of financial disruption that could impair the transmission of monetary policy in the euro area.”