Cryptocurrency, According To Lagarde, Is “Worth Nothing” And Should Be Regulated.

President of the European Central Bank Christine Lagarde claimed crypto-currencies are “based on nothing” and should be controlled to keep individuals from betting their life savings on them.

Lagarde told Dutch television that she is concerned about people “who have no understanding of the risks, who will lose it and be terribly disappointed,” which is why she believes the industry should be regulated.

The remarks come at a time when crypto markets are unstable, with digital currencies like Bitcoin and Ether down 50% from their highs last year. Regulators are scrutinizing the asset class more closely, concerned about the risks it poses to the broader financial system.

Lagarde expressed skepticism about cryptocurrency’s value, contrasting it with the European Central Bank’s digital euro initiative, which may be completed in the next four years.

She said:

“My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as an anchor of safety,”

She added “The day when we have the central bank digital currency out, any digital euro, I will guarantee — so the central bank will behind it and I think it’s vastly different than many of those things,” 

Other ECB officials have already expressed their worries. One of them is Executive Board member Fabio Panetta, who claimed in April that crypto-assets are “creating a new Wild West” and compared it to the subprime mortgage catastrophe of 2008.

“I want to practice what I preach,” Lagarde stated, adding that she does not own any crypto assets. But, as one of her sons invested against her advise, she follows them “very carefully.” She said, “He’s a free man.”

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