During her recent appearance on "The David Rubenstein Show: Peer-to-Peer Conversations," the governor of the European Central Bank, Christine Lagarde, stated that "cryptos are not currencies. Full stop."
Lagarde believes that stablecoins can have more trust since they are pegged to fiat and are promoted by tech companies. However, she favors Central Bank Digital Currencies (CBDCs) best of all, planning to launch one in the European Union.
ECB chief slams crypto, says stablecoins are a different animal
Answering the host's question about her attitude toward cryptos, Christine Lagarde claimed that cryptos are not currencies but are, rather, highly speculative, occasionally suspicious and high-energy-consuming assets, hinting at Bitcoin, which uses the proof-of-work (PoW) mining algorithm.
She also pointed out that stablecoins, which are being promoted by large tech companies and are related to the businesses conducted by them, are proliferating now and have to be regulated. However, earlier this month, Lagarde also stated that stablecoins are assets and not currencies.
Lagarde believes in the future of CBDCs
According to the ECB chief, Central Banks these days are prompted by their customers to create money that would fit the current century. These are CBDCs: Central Bank Digital Currencies.
Lagarde stated that the ECB is working hard to put CBDCs on the agenda so that they can replace cash. However, she added that digital currencies and habitual banknotes will work side by side so that consumers have the choice as to what type of money they want to use: a regular Euro or a digital one.
ECB is investigating CBDCs
As reported by U.Today in July, the ECB began its investigation of the digital Euro project. The European Central Bank is looking into the matter to avoid all of the traps and pitfalls that may occur while launching a digital Euro. This phase will take approximately two years, according to the ECB press release.
Back then, the press release also stated that the digital Euro will be greener than Bitcoin.