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25 June, 2024
 

Lagarde's stance on cryptos revealed amidst family investment fallout

ECB President's son faced steep losses after investing in cryptocurrency

Newsroom

European Central Bank President Christine Lagarde disclosed that her son experienced significant losses while investing in cryptocurrency, as reported by Reuters on November 24. Despite Lagarde's warnings, her son traded cryptocurrency against her advice, resulting in the loss of nearly all his investments, approximately 60%. Lagarde expressed her disapproval of cryptocurrencies, stating her "very low opinion of cryptos" during an event titled Euro20plus in Frankfurt, Germany, organized by Deutsche Bundesbank.

Addressing students at the event, Lagarde emphasized the freedom to invest and speculate in the cryptocurrency space but raised concerns about involvement in business and trade linked to criminal activity. Lagarde, a key figure in European Central Bank (ECB) policy, is actively engaged in various ECB initiatives related to cryptocurrency regulation, stablecoins, and digital assets.

In November 2022, Lagarde advocated for an enhanced version of the Markets in Crypto-Assets (MiCA) Regulation known as MiCA 2, with broader regulatory aims compared to its predecessor. MiCA covers custodial wallets, exchanges, and specific crypto assets and stablecoins, while MiCA 2 aims to regulate decentralized DeFi platforms and crypto assets without issuers.

Lagarde also addressed the collapse of FTX in her speech. In October 2023, she released a statement highlighting progress on the digital euro, a central bank digital currency (CBDC) proposed as a regulated alternative to cryptocurrencies. Lagarde has consistently advocated for CBDCs, expressing her support in May 2023.

[Information sourced from Reuters and CryptoSlate.com]

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Cyprus  |  Europe  |  banks  |  cryptocurrency

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