Christine Lagarde, President of the ECB, Shares Personal Story of Son’s Loss in Cryptocurrency Investments
Christine Lagarde, the President of the European Central Bank (ECB), has recently shared a personal anecdote highlighting her long-standing skepticism towards cryptocurrencies. Speaking to students in Frankfurt, Lagarde revealed that her son had ignored her advice against investing in crypto assets, resulting in a significant loss. According to Lagarde, her son lost approximately 60% of his cryptocurrency holdings. This story underscores Lagarde’s critical view of cryptocurrencies, which she has consistently expressed over the years.
Lagarde’s Position on Cryptocurrencies
Lagarde’s position on cryptocurrencies has been clear and unwavering. In 2022, she stated that cryptocurrencies are ‘worthless,’ grounded in her belief that these assets lack substantial footing.
She has also previously asserted that central banks are unlikely to hold Bitcoin in the foreseeable future, highlighting her preference for more traditional and regulated financial systems. Her stance reflects a broader skepticism among some financial leaders regarding the volatile nature and regulatory challenges associated with cryptocurrencies.
Advocacy for Central Bank Digital Currencies
While critical of decentralized cryptocurrencies like Bitcoin, Lagarde has shown interest in the development of central bank digital currencies (CBDCs). In April 2023, she indicated that a potential digital euro would be used in a limited manner for daily transactions, illustrating her belief in the potential of CBDCs to offer a more controlled and stable digital currency alternative. This perspective aligns with an increasing interest in CBDCs among global financial institutions seeking to modernize financial systems while maintaining regulatory oversight.
