FX.co ★ Lagarde believes crypto is worth nothing

According to ECB President Christine Lagarde, cryptocurrencies are “worth nothing”. Lagarde called on global policymakers to establish special rules to protect inexperienced investors making big bets on digital assets.

"My very humble assessment is that it is worth nothing, it is based on nothing. There is no underlying asset to act as an anchor of safety," Lagarde said when asked about cryptocurrency in an interview with Dutch talk show “College Tour”. The economist noted that she was concerned about people who did not understand the risks of investing in cryptocurrencies. The ECB president said that they could lose it all. Therefore, she believes these trading instruments should be strictly regulated. One member of the show’s audience said they had lost 7,000 euros ($7,469) after buying the Cardano token, to which Lagarde responded: "That hurts."

The former International Monetary Fund chief’s skepticism about cryptocurrencies is not new. Lagarde has previously expressed concerns about the environmental impact of digital currencies as well as their potential use in money laundering and sanctions evasion. She made these remarks at a time of heightened scrutiny of the cryptocurrency market as regulators react to the fallout from the collapse of terraUSD, a controversial so-called stablecoin that was meant to always be worth $1.