According to a Reuters report, European Central Bank (ECB) President Christine Lagarde revealed that her son experienced substantial losses in his crypto investments, disregarding numerous warnings.
Lagarde, a vocal critic of cryptocurrencies, has expressed concerns about their speculative nature, lack of intrinsic value, and potential misuse by criminals for illicit activities.
ECB Chief Urges Need For Global Crypto Regulation
During a town hall event with students in Frankfurt, Germany, Lagarde revealed that her son, whose identity was not disclosed, lost “almost all” of his investments in crypto assets.
Lagarde stressed that he ignored her advice despite her warnings and suffered significant financial consequences. Lagarde revealed that her son lost about 60% of his invested funds, prompting him to acknowledge her concerns reluctantly.
The European Central Bank has consistently advocated for the global regulation of crypto assets. Their primary objectives are to safeguard uninformed consumers from potential risks and to address vulnerabilities that can be exploited for terrorist financing and money laundering activities.
The ECB’s call for regulation is driven by concerns that privately issued currencies could undermine traditional government-backed currencies.
In response to the perceived threats posed by cryptocurrencies, the ECB has initiated the development of its own digital currency, the digital euro. However, according to Reuters, the implementation of the digital euro is still years away.
Digital Euro Progress
According to Reuters, the ECB entered the “preparation phase” for the digital currency project last month, estimating that it would require an additional two years before deciding on its potential rollout.
Lagarde reiterated her negative view of digital assets, expressing a “very low opinion” of them. While acknowledging individuals’ freedom to invest and speculate, she emphasized that participating in criminal activities should not be tolerated.
Lagarde highlighted the importance of distinguishing between legitimate trade and illicit practices in the crypto space. The European Central Bank Chief stated:
I have, as you can tell, a very low opinion of cryptos. People are free to invest their money where they want, people are free to speculate as much as they want, (but) people should not be free to participate in criminally sanctioned trade and businesses.
As the ECB continues to explore the potential of a digital euro, the debate surrounding cryptocurrencies and their regulation will likely persist, with global authorities seeking to strike a balance between innovation and security.
The total market capitalization of cryptocurrencies has seen a notable increase, rising by 2.3% within the last 24 hours. This surge has propelled the industry’s overall capitalization to surpass the previous milestone of $1.4 trillion.
In light of this recent influx of funds into the market, the leading cryptocurrency, Bitcoin (BTC), has achieved a new high for the year, reaching $38,400. Bitcoin’s upward momentum has persisted following a brief consolidation phase ranging between $36,000 and $37,000.
Featured image from Shutterstock, chart from TradingView.com