EU Central Bank Chief Vows to Insulate Eurozone From Crypto Assets Volatility

The EU Central Bank (ECB) head, Christine Lagarde, admitted to warning the immediate relatives from crypto bets that turned catastrophic losses. She confessed her anti-crypto stance in a statement reiterating her efforts to insulate the Eurozone from the volatility of digital assets.

Lagarde revealed in a Friday, November 24 statement the struggles to insulate the Eurozone against the volatility of crypto assets. She confessed that she failed to accomplish the same for her son, who could not resist crypto bets.

ECB Chief Admits Family Struggle Against Crypto Bets

The French politician revealed that the son defied her wishes and advice by purchasing cryptocurrencies that he ultimately lost. Lagarde lamented the loss in her loss while addressing students in Frankfurt town hall. 

Although the ECB president acknowledged that her son exercised his privilege, the move translated to unrecoverable investment loss. She echoed her 2022 pronouncement, revealing that one of her two sons had crypto holdings despite the failed interventions and attempts to convince otherwise. 

The European official was noncommittal on who of her two sons invested in crypto. However, the ECB chief informed the Frankfurt audience on Friday that the son conceded to heed the mother’s advice after sustaining huge losses. 

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Lagarde illustrated that the son suffered a 60% loss on the investment committed towards the crypto assets. She added that the son would reluctantly admit to making an erroneous investment decision in a subsequent round of discussion.

The President of the EU banking system leveraged her son’s experience to buttress her distaste for crypto. In 2022, Lagarde labeled all crypto assets as worthless while also based on nothing. She dismissed the inquiry on whether central banks should consider holding Bitcoin as a possibility as misplaced. 

ECB President Reiterates Pursuit of Digital Euro

Although Largarde is a vocal critic of decentralized cryptocurrencies such as Bitcoin and other cryptos, she has actively supported the adoption of central bank digital currencies (CBDCs). As an avid supporter of CBDCs, the ECB chief has actively pursued the digital Euro during her reign. 

Nonetheless, the ECB is yet to reach a final decision regarding the adoption of the digital Euro in the region. CBDCs involve electronic versions of the fiat currency. Similar to the proposed digital Euro, the CBDCs would facilitate peer-to-peer electronic payments. CBDCs adoption would eliminate the reliance on intermediaries.

Although CBDCs harbor multiple benefits, only a handful of countries, such as the Bahamas, Nigeria, and Jamaica, have adopted them. The CBDCs projects constitute political flashpoints in various countries led by the United States. 

Unlike the EU, US detractors profile the CBDCs as constituting financial technology that appears downright unAmerican. Such beliefs drive the attempt undertaken by several jurisdictions at the state level to outlaw CBDCs. The opponents of CBDCs allege that it facilitates the government to readily monitor financial transactions, thereby stamping on one’s privacy rights.

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