Lagarde, President of the European Central Bank, said cryptocurrency was "groundless" and should be regulated to prevent people from using their life savings to fry money. Lagarde told Dutch television that she was worried that "people will lose money and be disappointed if they don't understand the risks. That's why I think it should be regulated."**
Lagarde made the above remarks at a time of turmoil in the cryptocurrency market; Digital currencies bitcoin and Ethereum have fallen 50% from their peak last year. At the same time, regulators are stepping up their scrutiny of this asset class because of concerns that cryptocurrency may pose a threat to the entire financial system.
Lagarde said she was skeptical about the value of cryptocurrency and compared it with the European Central Bank's digital euro; The digital euro project is likely to blossom and bear fruit in the next four years.
"In my humble opinion, it has no value, no foundation and no underlying asset as a security anchor," she said.
"On the day of the launch of the central bank's digital currency, there will be central bank support behind any digital euro. I think it is very different from many cryptocurrencies," Lagarde said.
