European Central Bank President’s Son Loses 60% of Crypto Investment
Christine Lagarde, the President of the European Central Bank (ECB), revealed that her son suffered a loss of approximately 60% on his crypto investments. Despite Lagarde’s advice against investing in crypto, her son disregarded it and ended up losing a significant portion of his invested funds. Lagarde stated that during a subsequent conversation, her son reluctantly acknowledged that she was right.
Lagarde’s Anti-Crypto Stance
Lagarde, who has been critical of cryptocurrencies, emphasized that the amount lost was not substantial. Since assuming the position of ECB chief, she has maintained an anti-crypto stance. However, she is currently leading efforts to establish the digital euro, which recently entered its preparation phase.
Our Governing Council has decided to move to the next phase of the digital euro project.
In November 2023 we will start laying the foundation for the possible issuance of a digital euro. A decision on issuing a digital euro will come at a later stage.https://t.co/xuKklame0U pic.twitter.com/Nn0Z8RggVn
— European Central Bank (@ecb) October 18, 2023
Lagarde’s Negative View of the Crypto Industry
In addition, Lagarde expressed her “very low opinion” of the crypto industry. She believes that while people have the freedom to invest and speculate, they should not be allowed to engage in criminal activities through trade and businesses. Lagarde commended Europe’s Markets in Crypto Assets (MiCA) regulation but emphasized the need to focus on rapidly-growing areas like crypto staking and lending.
Lagarde’s Previous Warnings
In June 2022, Lagarde cautioned about the risks associated with cryptocurrencies and decentralized finance (DeFi). She advised investors to avoid unfamiliar sectors that lack proper regulations. Later in the year, she reiterated the importance of monitoring the stability and reliability of cryptocurrency exchanges, citing the collapse of FTX as evidence.
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Hot Take: Christine Lagarde Highlights Risks and Calls for Regulation in Crypto
Christine Lagarde’s personal experience with her son’s loss in crypto investment reinforces her negative view of the industry. As President of the ECB, she has been vocal about the risks involved in cryptocurrencies and DeFi. Lagarde emphasizes the need for regulations to address these risks and protect investors. While leading efforts towards a digital euro, she urges caution and vigilance in monitoring the stability and reliability of cryptocurrency exchanges. Lagarde’s perspective highlights the importance of responsible investing and regulatory frameworks in the evolving crypto landscape.
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