President Lagarde: “Bitcoin Is Not Money”

The president of the European Central Bank (ECB), Christine Lagarde, stated that they are considering introducing new regulation for crypto assets like Bitcoin.

BFMTV guest Lagarde said of Bitcoin, which has been in high demand recently, “Crypto assets are not a currency. It is a highly speculative entity ”.

However, emphasizing that some crypto assets ‘look like money’, Lagarde said: “If the private sector engages in money-related activities, it must be subject to exactly the same rules and the same control mechanisms as other currencies.”

Underlining that Bitcoin does not pose a problem on its own, Lagarde said: “What is needed is that consumers are never looted and they must be fully informed about the nature of the risk they are taking. “If they buy a Bitcoin, they should know that it is a speculative asset.”

Lagarde also recalled that said cryptocurrencies are used for illegal activities in places like Darkweb.

With the digital euro, individuals will be able to open direct accounts with the European Central Bank for the first time. The goal is to keep digital accounts in euros in a more secure system than private banks. Because when it comes to the bankruptcy of private banks or in the event of theft, digital accounts run the risk of being lost or stolen.

European Central Bank against the growing cryptocurrency boom euro digital project had explained.

There is a risk that people in the Eurozone will start to use cryptocurrencies intensively and get out of the bank’s reach, reducing the effectiveness of the monetary policies of the European Central Bank.

The digital euro will be the electronic version of the euro banknotes and coins currently in use. It will be accepted as the official currency like the euro and the European Central Bank will assume its guarantors.

The bank is expected to decide whether to launch the digital euro project in mid-2021.

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