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ECB President Christine Lagarde on Global Regulation for Bitcoin

ECB President Christine Lagarde on Global Regulation for Bitcoin
Photo: Peter Juelich/Bloomberg

The President of the European Central Bank, Christine Lagarde, thinks that Bitcoin needs a unified global regulation framework to function correctly. The 65-year-old French politician and recent President of the ECB have been calling on bitcoin’s precise regulation for a while. In 2020, she outlined that cryptocurrencies and Bitcoin present new opportunities and undiscovered risks. Moreover, they require clear legislation to attain their fullest potential. 

Today, Lagarde doubled-down on her narrative through an interview at the Reuters Next conference. She stated that bitcoin’s alleged engagement in illegal activities stops it from entering the mainstream. Christine Lagarde joined various global regulators that calls out for executing cryptocurrency regulations. She elucidates that Bitcoin has excellent participation in money laundering activities. Nevertheless, she did not offer particular instances or embellish on the money laundering cases. When questioned about Bitcoin’s current bull run from $10,500 in Oct. 2020 to above $40,000 in Jan. 2021, Lagarde stated that the cryptocurrency is a speculative asset by any account.

Christine Lagarde on the launch of Digital Euro

Lagarde also spoke about CBDCs (central bank digital currencies) at the conference. She stated that there is no specific timeline for the launch of the digital euro as of yet. Further, she said it would take a reasonable amount of time to ensure that we have something safe. The President also restated that the digital euro would not eliminate banknotes. 

Kevin O’Leary, a businessman, author, and politician, appears to share Lagarde’s view on the matter. The Shark Tank star has earlier shattered bitcoin, and he reaffirmed his stance through a recent interview with the bitcoin bull Anthony ‘Pomp’ Pompliano. O’Leary stated that he views bitcoin’s value as “a nothing burger – a giant nothing burger.” 

Nevertheless, he stated that the cryptocurrency could expand to become something with great value if world regulators are behind it. Notwithstanding his criticism, O’Leary revealed during an appearance on Pomp’s podcast in December that he held some bitcoin. He even mentioned that he could grow his holdings up to 2.5% of his complete portfolio in the future.

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