Christine Lagarde: Crypto is worth nothing

European Central Bank president Christine Lagarde has used an appearance on a Dutch talk show to tell viewers: “my very humble assessment is that [cryptocurrencies are] worth nothing”.

Speaking on College Tour, she became the latest top-ranking official to openly criticize the value and worth of cryptocurrencies.

Lagarde showed restraint in going any further, adding that the opinion she expressed was her own, not necessarily that of the institution she represented.

Lagarde said her main issue with cryptocurrencies was that they’re based on nothing. There is no underlying asset or anchor of safety, she explained, and said that these conditions would be important in defining how reliable a cryptocurrency is.

Her comments come as cryptocurrencies are going through one of their worst downturns occasioned by a stablecoin that got unhinged from the US dollar value and sent the market plummeting.

“I’m concerned about those people who think it’s going to be a reward, who have no understanding of the risks, who will lose it all, and who will be terribly disappointed, which is why I believe that should be regulated”, Lagarde said, urging caution by over-zealous investors who are ready to overlook the evident problems with the currency.

A member of the audience shared that they had lost $7,500 after they invested in Cardano. Lagarde simply said: “that hurts”. Lagarde’s tone and attitude towards cryptocurrencies resembles that of other top financiers who have been cautioning consumers not to get too excited about alternative crypto finances.

Even mainstream companies that are invested in crypto, such as Coinbase and FTX have slowed down. In the meantime, you may continue to enjoy crypto gambling at Bitcasino, 1xBit or FortuneJack.

Source

Updated: 05/24/2022 — 17:00