European Central Financial institution President Christine Lagarde revealed that her son misplaced cash investing in cryptocurrency, in accordance with Reuters on Nov. 24.
Lagarde mentioned that her son misplaced “virtually all” of his investments by buying and selling cryptocurrency in opposition to her warnings. Throughout an occasion, she mentioned:
“He ignored me royally, which is his privilege … And he misplaced virtually all the cash that he had invested. It wasn’t lots however he misplaced all of it, he misplaced about 60% of it … So once I then had one other discuss with him about it, he reluctantly accepted that I used to be proper.”
Lagarde added that she has a “very low opinion of cryptos.” She mentioned that though individuals are free to take a position and speculate within the space, they shouldn’t be allowed to participate in enterprise and commerce that includes felony exercise.
Lagarde addressed an college students at an occasion in Frankfurt, Germany. The occasion was titled Euro20plus and was organized by Germany’s central financial institution, Deutsche Bundesbank.
Lagarde is concerned in ECB coverage
Lagarde is in any other case concerned with lots of the ECB’s different actions in regards to the regulation of cryptocurrencies, stablecoins, and digital property.
In November 2022, Lagarde advocated for an replace to Markets in Crypto-Property (MiCA) Regulation referred to as MiCA 2, which she mentioned could be “broader [in] what it goals to manage” than its precursor. MiCA applies to custodial wallets and exchanges and sure crypto property and stablecoins. Against this, MiCA 2 would tackle regulation of decentralized DeFi platforms and crypto property with out issuers, for instance.
Although she had beforehand advocated for the MiCA 2 framework, Lagarde additionally mentioned cited the then-recent collapse of FTX throughout that speech.
In October 2023, Lagarde issued a press release describing advances across the digital euro, a central financial institution digital forex (CBDC) that would present a regulated different to cryptocurrency. She extra broadly advocated for CBDCs in Could 2023.