ECB’s (European Central Bank) Christine Lagarde says crypto assets are worth nothing. She is the central bank president, so it doesn’t come as a surprise that her views on crypto are as cold as any other central bank on the planet. Christine said that crypto assets are very risky and speculative. So, in her assessment, it doesn’t have any value because there are no assets backing it for safety.
Christine on crypto, CBDCs, and interest rates hike
Christine said that she has never invested in crypto, but her son with little luck. More important she thinks that digital Euro could change the game, and she made a bold statement that once they have a CBDC, she will guarantee it. That makes sense as the central bank would be behind it; however, we also know CBDCs would be like fiat, based on blockchain. In that case, it would not be an investment.
Lagarde also talked about the current monetary policy in Europe and the interest rate hike that is happening and will continue in the future. She said that they are ready to raise interest rates, but most likely, it’s not going to be a 50 basis point. Her take is it’s better not to put brakes on a fast-moving car but rather to lift the accelerator and slow down inflation.
Let’s talk about crypto a bit
There are a few points that Central bank authorities and many notable personalities put forward when saying that crypto doesn’t have any value. The first one is that no asset backs crypto, and the second one is it doesn’t produce anything. Well, to be clear, there are a lot of cryptocurrencies that are useless and are speculative, but if we only talk about Bitcoin and the top tokens, most of them add real value. Some are used for cheap and fast transactions, some for building apps, smart contracts, and a lot more. The point is crypto doesn’t have to produce anything physical to be valuable.
To argue the first point of no assets backing crypto, I would just like to ask one question. Is Gold backed by anything? No! because it is an asset itself. That is the point of Bitcoin. And many other cryptocurrencies provide utility, and their price is determined by market demand.
What are your thoughts on ECB’s Christine Lagarde as she says crypto assets are worth nothing? And do you agree with my counterarguments? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
Also Read: Coinbase co-founder Fred Ehrsam buys $75 million worth company’s shares amidst the dip.
