Cryptocurrency News

ECB President Christine Lagarde Says Bitcoin Needs Regulation

By January 16, 2021 No Comments

Key highlights:

  • Christine Lagarde, the head of the European Central Bank, thinks Bitcoin is very speculative and needs regulation
  • Lagarde believes the crypto rules should be global, and the public should accept them
  • On the other hand, some politicians like Brian Brooks they favor blockchain technology

Christine Lagarde comments on Bitcoin and central bank digital currency

ECB President Christine Lagarde recently said that she considers BTC as a speculative asset that needs to be regulated globally. In her opinion, a lot of »funny business« has been facilitated through Bitcoin, and the asset has also been used to launder money. Lagarde called for a global approach to regulating Bitcoin, something that would be very difficult to achieve. 

Lagarde has expressed her views about CBDCs (central bank digital currencies). She explained the digital euro at a conference and declared that they are considering public feedback about the issue.

She pointed out that there has been significant interest from the public in response to the ECB’s consultation  regarding the digital euro. Many participants have answered their questions about the digital euro and what it should ideally look like. 

According to Lagarde, they want to be careful about the topic, and they want to make the correct decision. Lagarde didn`t provide a timeline for launching digital euro, but said the process will likely be time-consuming. The ECB is taking a careful approach in order to ensure that the digital euro will be safe to use.

Lagarde expects the digital euro to be made available in approximately five years, if the ECB decides to pursue the project. Even if and when the digital euro becomes a reality, it will not replace cash – bank notes will still be accepted, Lagarde explained.

Not all official are crypto skeptics

Not all government officials and politicians have adopted a negative stance towards Bitcoin and cryptocurrency – one of the prime examples of this is Brian Brooks, the former head of the U.S. Office of the Comptroller of the Currency. Under his leadership, the OCC has made several statements highlighting the importance of blockchain technology and its transformative potential in the financial sector.