former head of the IMF and current head of the European Central Bank Christine Lagarde‘s criticisms of the crypto money sector yesterday at the last minute. From our Twitter account we shared:
European Central Bank President Lagarde: “Cryptocurrencies are not currencies, period”#Bitcoin #BTC #cryptocurrency pic.twitter.com/l3FOGmP8gn
— Bitcoin System (@bitcoinsystem) September 16, 2021
lagarde, David Rubenstein Emphasizing that cryptocurrencies are not actually “money”, he underlined the need to put an end to this.
Lagarde stated that cryptocurrencies, whose value is indexed to fiat currencies, known as stablecoins, are introduced by technology companies, but that they are actually in favor of central bank digital currencies, and they do not see them as dangerous.
While giants like Facebook are rolling up their sleeves to launch their own stablecoins, according to Lagarde, the fact that central banks launch their own digital currencies will change the situation.
Cryptocurrencies Are Not Money And Harm The Environment!
The famous name stated that cryptocurrencies are “speculative” assets rather than real money, emphasizing that they also have very high energy consumption. According to Lagarde, Proof-of-Work-based cryptocurrencies such as the leading cryptocurrency Bitcoin are definitely harming the environment.
Lagarde also stated that stablecoins should actually be regulated and underlined that they should not be included in the money status in any way.
Lagarde has previously made serious criticisms against cryptocurrencies and can be expected to continue his harsh statements in the coming months. As the date of the Digital Euro project approaches, these criticisms may increase and even bans may be seen.
Reaction from Many Famous People
Making such statements, especially for cryptocurrencies, is not acceptable according to many famous names. These expressions, which are generally heard by the elderly, are accused of “old-fashionedness”. Because in the last situation, as seen in El Salvador, even states now see Bitcoin as the official currency. Discourses such as “cryptocurrencies are useless, not money, they are worthless”, which are generally heard from people who have adapted to the old system and are older, were also made for the Internet in the first years of its existence. In this context, reactions continue to come from many famous names who see such comments as unrealistic.
In addition, Bitcoin is seen as a competitor and threat to digital currencies to be issued within the central bank. Stating that this is exactly why China has taken a negative attitude towards Bitcoin, experts underline that the statements made by the central banks should also be evaluated in this context.