ECB: President Christine Lagarde says no to bitcoin reserves
What do ECB President Lagarde and US Treasury Secretary Yellen think about cryptocurrencies? Both criticise the lack of regulations, but are not fundamentally opposed to digital money.
The current surge of Bitcoin and other cryptocurrencies is putting the monetary guardians in a bind. They see their influence waning at the same rate as the confidence of institutional and private investors in the crypto Bitcoin Method sector is rising. Now, European Central Bank (ECB) President Christine Lagarde has participated in a conference call hosted by business magazine The Economist and outlined her position on the issue. She said on Wednesday, according to media reports, that she did not consider Bitcoin a real currency, adding that central banks will not hold it as a reserve currency any time soon.
It’s very unlikely – I would say it’s out of the question.
Lagarde said in her original speech. Most recently, ECB President Lagarde had spoken rather critically about Bitcoin at a conference of the Reuters news agency in January. She called for global regulation. She also said that in some cases criminals had used the digital currency for money laundering activities and that all loopholes had to be closed.
There must be regulation. It has to be applied and agreed … at a global level, because if there is a way out, that way out will be used,“ she said.
Yellen, like Lagarde, points to criminality
Nevertheless, she does not completely reject digital currencies. She sees a place for them in the future, including at the ECB. She said the pandemic had pushed economies towards faster digital adoption. In about four years, she said, there could be a digital euro currency. This thesis was recently given renewed impetus by a ruling of the European Court of Justice on the restriction of cash.