A former President of the International Monetary Fund (IMF) and now the President of European Central Bank, Christine Lagarde, has said cryptocurrencies are worth nothing in assets.
She made this known in an interview with a Dutch talk show, ‘College Tour’ on Sunday that cryptos are not based on any tangible assets, saying that there is no underlying anchor for safety for investors.
She called on policymakers across the globe to put rules in place to protect newbies making huge bets on digital assets.
Cryptos have taken a hit across the world this year with the largest of them, Bitcoin shedding more than half of its value since it got to an all-time high in November last year.
Lagarde said that she worried about people who think it is a reward but have no understanding of the risks and thereby lose everything, saying that is why she thinks it should be regulated.
Used for money laundering and sanction evasion The erstwhile IMF boss’ distrust of cryptos is not new.
CNBC has reported that she had raised concerns about the environmental effects of digital currencies and their possible use in money laundering and sanctions evasion.
Recently, there has been heightened scrutiny of the crypto industry after investors lost over $40 billion in the collapsed TerraUSD, a controversial stablecoin that was to be pegged to the dollar.
Central banks are working on their own digital currency alternatives to take advantage of the rapid development of digital currencies and to lure crypto users into using CBDCs.
Investors are in tears as over N3 trillion worth of bitcoin is wiped out in less than 24 hours. The cryptocurrency investors suffered a major blow on Saturday after Bitcoin, other coins dropped in value by over a billion dollars.
This happens as global investors sell off their coins to settle for secure investment options as Christmas day nears.
Bitcoin, the largest cryptocurrency by market value, plunged by 31.6% from the year’s high of $69,000 reached on Nov. 10.
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