Submitted by Hardscrabble Farmer
European Central Bank President Christine Lagarde has taken aim at cryptocurrencies, arguing in an interview on Dutch television that they’re essentially “worth nothing” as they lack underlying assets “as an anchor to safety” while calling for them to be regulated.
Lagarde made the remarks in an interview on the Dutch television program “College Tour,” due to be released on May 22, according to Politico.
“I have said all along the crypto assets are highly speculative, very risky assets,” Lagarde told the program.
“My very humble assessment is that it is worth nothing. It is based on nothing, there is no underlying assets to act as an anchor of safety.”
She added that she’s worried about people speculating on cryptocurrencies with their life savings as they may not be aware of the risks.
Lagarde said she’s concerned about those “who have no understanding of the risks, who will lose it all and who will be terribly disappointed, which is why I believe that that should be regulated,” as per Bloomberg.
In January, Lagarde called for global regulation of Bitcoin, telling Reuters in an interview at the time that the digital currency had been used for money laundering and arguing for rules that would close related loopholes.
Bitcoin “is a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity,” Lagarde told the outlet in an interview at the Reuters Next conference.
While Lagarde did not elaborate on money laundering specifics related to cryptocurrencies, she argued for regulation that would be agreed upon and applied at a global level “because if there is an escape, that escape will be used,” referring to regulatory loopholes.
Her remarks come amid recent turmoil in crypto markets, which have shed over $1 trillion in value over the past six months.
Other crypto woes include the collapse in value of the TerraUSD (UST) stablecoin, which was supposed to be pegged 1–1 to the U.S. dollar but which has fallen to around six cents as of May 21, according to CoinMarketCap.
The spectacular UST plunge prompted Securities and Exchange Commission Chairman Gary Gensler to say earlier in the week that he, like Lagarde, worries that investors will be hurt in crypto markets.
“I think a lot of these tokens will fail,” Gensler told reporters after a House Appropriations Committee panel hearing on May 18.
“I fear that in crypto … there’s going to be a lot of people hurt, and that will undermine some of the confidence in markets and trust in markets writ large.”
Besides regulators and other officials ramping up their crypto criticism, other prominent individuals have expressed reservations about the asset class.
Microsoft co-founder Bill Gates said during a Reddit Ask Me Anything session on May 19 that he hasn’t invested in crypto because it isn’t “adding to society.”
“I don’t own any,” Gates wrote.
“I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments.”
Like Gates, Lagarde, too, doesn’t own any crypto, telling the College Tour program that she wants to “practice what I preach.”
Other ECB officials have made critical remarks with regard to cryptocurrencies and, like Lagarde, have called for them to be regulated.
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“My very humble assessment is that it is worth nothing. It is based on nothing, there is no underlying assets to act as an anchor of safety.”
Now do fiat currencies. I’ll wait.
No,no! Fiat is debt! Negative value.
“…they’re essentially “worth nothing” AS THEY LACK UNDERLYING ASSETS (my emphasis) “as an anchor to safety”
Who wants to tell her?
She won’t listen to me.
She’s a BANKER for fuck’s sake!
Worse than that, she is a lawyer not a banker.
“now do fiat currencies”
the dollar is backed by the assets and collateral of the united states, which are to be seized in the event of dollar default.
which is why the dollar is designed from the beginning to fail and default.
Sorry, no. Financial instruments that are backed by something are convertible into that something.
When the USD was backed by gold and silver, you could exchange your notes and certificates for gold and silver, on demand.
The fiat dollar is backed by nothing, by design and intent.
sorry, incorrect. perhaps a better word is “backstopped” – the assets of the united states are pledged as collateral in the event of default on repayment of dollar debt.
Correction; Our fiat currency is the product of the Federal Reserve System. They are Federal Reserve Notes. The Federal Reserve is privately owned lock, stock, and barrel. Therefore, any debts incurred through the purveyance of this currency or ‘note’ is an obligation of the several private banks (7).
Truly brilliant.
And completely correct.
The problem is, we have 120 TRILLION dollars in debt.
That amount cannot EVER be repaid. So what happens when that eventuality
becomes reality? It is coming because reality cannot be ignored forever.
Eschaton.
“we have 120 TRILLION dollars in debt. That amount cannot EVER be repaid. So what happens when that eventuality becomes reality?”
u.s. asset confiscations will begin.
unannounced, of course. this w.h.o. thing probably is part of that process.
I’ll be watching you extract that pledged collateral, when the US defaults on it’s dollar debt.
Water from rocks, my friend. Water from rocks.
The only alternative is PM and stored commodities you’ll be able to eat or barter.
It literally says “Federal Reserve Note. Legal tender for all debt, public and private, backed by full faith and credit of the US Government.”
As far as I’m concerned, the US Government has used up any faith and credit it had with me. The dollar, as originally defined, was a finite value based on a silver denomination. That standard was debased and broken years ago, and now that Rule of Law means nothing, the dollar is little more than a currency that I will exchange in need, buying gold and silver as insurance.
I think she meant the Euro.
You are the underlying asset.
bingo. winner winner chicken dinner. Isaiah 61:6 “You will eat the wealth of nations, And you will boast in their riches” and Isaiah 60:12 “For the nation and the kingdom which will not serve you will perish”. they’ll be living the dream
Cryptocurrencies are worth nothing because they’re based on nothing…. you know, sort of like the US dollar and other fiat currencies. Pot meet kettle.
For a somewhat-more-technical analysis along the same lines, check out this interview I found (discussed recently on Slashdot): die in a fire
“I like investing in things that have valuable output” For Bill Gates.
Please…..someone…………what is it with these female faggot know it alls ?
Constant running of their mouths.
STFU and make me a sammy……christine !
“…they’re essentially “worth nothing” as they lack underlying assets “as an anchor to safety…”
And the difference between them and the US dollar is what, exactly… “expert?…”
Her response would be “the full faith and credit ” of the us gubmint……its a religious thing
Until the 2020 election the dollar was backed by the integrity and ‘credit rating ‘ of America. Integrity went away Nov/2020. All we have now is our credit rating. Give that what you will.
Technically the shit fiat currencies of every nation are backed by the ENSLAVEMENT of their respective citizens and ‘massas ability to steal their wealth.
Very astute look. You mean the taxpayers i,m sure. Talk about slaves of all stripes. Up next debtors prisons.
Technically, with central banking, everyone with a dollar in their hand is a slave to the government, not just the taxpayers.
And the sheep are happy with all that paper.
Land of the fee, home of the slave.
Another con (fidence) game.
Just the other day I saw where she allegedly told Ray Dalio not to talk about gold at some summit…circa 2015? Did anybody else see that?
“If you don’t hold it, you don’t own it.”
-Lynette Zang, ITM Trading
Money, at its core, is really nothing more than an account mechanism.
Gold is historically the best and oldest form of money, but it does have its limitations.
Most cryptocurrencies are just a software approximation of gold, but they have their own limitations.
Crypto is based/backed by nothing ergo we need to have our hands in on it!!! OH i see, so you can regipulate it. Got it.
Ahhh … Bill from the Gates — has the largest TSLA short position of all …
It must be tough to create a currency that’s always having to do battle with the others creations.
Still, that hasn’t stopped anyone from debasing their own. How come that is?
She’s correct in stating that cryptocurrencies are essentially worthless….0nly valuable because
people BELIEVE they are valuable. And the EXACT SAME THING can be said about the US Dollar
and ALL Fiat currencies. But that’s not the issue. Banks hate crypto for one basic reason….
because they can’t control them and use them to get richer.
Any currency only has value if it is trusted as a medium of exchange for goods required. When it is no longer trusted it will have no value.