ECB President says bitcoin is “highly speculative” and needs to be regulated.

European Central Bank President Christine Lagarde has said that bitcoin is "highly speculative" and needs to be regulated.

European Central Bank President Christine Lagarde, speaking at the Reuters Next conference on Wednesday, mentioned that bitcoin has conducted “some funny business and some interesting any reprehensible money laundering activity.” “And there have to be regulations, and this has to be applied and agreed upon,” at a global level, she further noted. “If there is an escape, that escape will be used,” she said. “Global cooperation and multilateral action are absolutely needed, whether the G-7 initiates it, moved into the G-20, and then enlarged,” ECB President added.  

 

ECB President also mentioned CBDCs. 

ECB President also spoke about central bank digital currencies (CBDCs) at the conference. She said the ECB just recently concluded a consultation of the general public about the digital euro, and it has received the “highest level of responses” to the consultation. “No less than 8,000 people have actually logged in and responded to the many questions that were on that questionnaire concerning a digital euro,” said Lagarde. She further that they need to be very careful about a digital euro and where they need to have a system that is secure, that is safe, that responds to Europeans’ demand.

 

U.K.’s FCA bans crypto derivatives sale. 

As reported earlier, the ban on the sale of cryptocurrency derivatives to retail investors in the U.K. has officially gone into effect. The ban was proposed by the Financial Conduct Authority in October and became law on January 6 this year. The U.K.’s financial regulator FCA said that crypto derivatives weren’t suitable for retail customers because of their harm. These customers can’t accurately value the derivatives because of the prevalence of market manipulation, extreme volatility, inadequate understanding, and the inherent nature of crypto, among other reasons, according to the financial regulator. 

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Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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