The European Central Bank President called cryptocurrency ‘worthless’ during an interview. Lagarde, who always had a negative stance on cryptocurrencies, claimed that they are “based on nothing” and should be strictly regulated.
Lagarde further argued that investing in Bitcoin and the altcoins could leave people “terribly disappointed” since the industry lacks proper rules.
Lagarde's comments on crypto-assets were shared on the Dutch television show College Tour, where she was addressing an audience of mostly students. “I've said all along that crypto assets are highly speculative, very risky assets. If you want to invest there, it's your choice”, she said in response to a question about investing as a young person.
“My very humble assessment is that it is worth nothing, it's based on nothing, there are no underlying assets to act as an anchor of safety”, she added.
Previously, Lagarde had said that Bitcoin was being used for conducting “reprehensible” money laundering activity. The French banker has repeatedly pushed for harsher cryptocurrency regulations within the EU and criticized Bitcoin's energy consumption.
However, there was a twist to Lagarde's cautionary tale. The ECB chief said she “follows” the fate of cryptocurrencies “very carefully” as her son opposed her advice and invested in tokens. However, she explained, “the fact that my son invests in Bitcoin does not change my views on whether Bitcoin is money or not”, she concluded.