ECB Director Christine Lagarde told students in Frankfurt that her son invested in cryptocurrencies against their advice – and had no luck at all.
Once, when Austria was still called a world power, the Habsburg Emperor Joseph II forbade the people to eat gingerbread because he had spoiled his own stomach. And if something is not good for the monarch, then it is his duty to protect his subjects from it.
The Queen of the European Central Bank, Christine Lagarde, recently justified her rejection of cryptocurrencies with a private anecdote. Her son, the director told a group of students in Frankfurt, had suffered an almost total loss with his investment in cryptocurrencies, despite her urgent warnings.
“He ignored me, which is his privilege, and he lost almost everything he invested afterwards.” Almost everything here means “60 percent” of an undisclosed but supposedly manageable sum. When the director spoke to her son afterwards, he gritted his teeth and admitted that his mother had been right. You don’t become Europe’s top monetary authority if you don’t know how to recognize a bad investment!
Lagarde has two sons in their mid-30s. She does not reveal which of them gambled away on the crypto market. Unfortunately, she doesn’t say which coins her son invested in and when, and whether he has already realized the loss by changing the coins for euros, or whether he is still holding and perhaps already in the black again today.
Anyone who has bought Bitcoins over the past few years must have been very precise in order to be so heavily in the red today. Strictly speaking, the price was only higher for a few months in 2021 and 2022 than it is today, and only for a very few weeks was it so high that it is now more than 30 percent in the red. The situation is similar with Ethereum, where there was at least the opportunity for a few weeks to enter in such an inappropriate way that today you would be 60 percent in the red. Not easy, but doable!
The suspicion therefore arises that the son of Europe’s first central banker has not invested regularly in stable cryptocurrencies such as Bitcoin and Ether over the years, as widely recommended – but in shitcoins, windy tokens, possibly even NFTs, and that too Peak of the hype.
But Christine Lagarde is not embarrassed that her son, of all people, is investing like a complete beginner. Instead, she feels confirmed in taking a rather negative course against crypto: “As you know, I don’t have a high opinion of crypto. People are free to invest their money in whatever they want and speculate as much as they like, but people should not be allowed to participate in a sanctioned, criminalized trade.”
According to the head of the ECB, people should be allowed to continue eating gingerbread even though her son has an upset stomach. But perhaps the House of Lagarde would benefit from a little financial tutoring – which doesn’t just apply to the junior.