HOT | ECB President declares all cryptocurrencies, including stablecoins, as non-currency – News Sept 03
In an interview with the World Economic Forum founder and chairman of the board, Klaus Schwab, on September 1, Lagarde stated that cryptocurrencies “present themselves as money” but view them as belongings that should be managed and monitored by wealth administration companies. According to this definition, the ECB President declares that digital currencies linked to fiat are also considered belongings.
“Stablecoin fools itself as forex. However, in actuality, it’s fully pegged to actual forex. For instance, some self-described stablecoins can be utilized for transactions. However, the worth is accurately aligned with the greenback. ”
ECB President added that the initiatives behind every stablecoin need to be fiat-tied:
“It must be checked, monitored, and controlled so that customers and customers of those instruments are assured not to be misled. I believe the latest historical knowledge has proven that these reserve cash are usually not out there and as liquid as they need to be. ”
Lagarde could also be referring to Tether, the most critical issuer of stablecoins by market capitalization. The firm recently agreed to pay $ 18.5 million in damages as a part of a settlement with the New York Attorney General.
However, regardless of the seemingly drastic opinions on digital belongings, Lagarde made it clear that the ECB intends to answer buyer requests. However, she had previously criticized stablecoins and cryptocurrencies. However, she didn’t rule out the likelihood that the ECB will introduce a digital central financial institution forex. In July, the Governing Board of the ECB introduced that it could provoke an investigation section for a two-year digital euro mission.
“If prospects choose to make use of digital currencies relatively than money and banknotes, then we’re ready. We will meet this want and have a safe European-specific answer on melodic phrases, and it can be utilized as a cost method. ”
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According to Cointelegraph