Christine Lagarde, president of the European Central Bank (ECB), revealed at a recent meeting in Frankfurt that her son has experienced significant losses from investing in crypto assets. This episode comes despite Lagarde’s repeated warnings about the risks associated with cryptocurrencies.
Lagarde, known for her critical stance towards cryptocurrencies, described them as speculative, useless and often used in illicit activities. In her words, her son chose to ignore her advice and as a result, lost around 60% of the amount invested in crypto assets.
“My son ignored my advice and invested in cryptocurrencies. It wasn’t much, but he lost around 60% of what he invested. And when we had another conversation, he reluctantly admitted that I was right,” Lagarde said.
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ECB focuses on cryptocurrency regulation to protect consumers
This personal account from the ECB president comes at a time when the institution is intensifying its efforts to regulate the cryptoasset sector. The ECB aims to protect consumers who are uninformed about risks and close loopholes that could be exploited to finance terrorist activities or money laundering.
Additionally, the ECB is working on its own digital euro project, motivated in part by concerns that private currencies could eventually replace government-issued money. The digital euro project, however, is still at an early stage. The institution states that it will need another two years before deciding whether or not to launch the digital currency.
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Lagarde emphasized the freedom of individuals to invest where they wish, but highlighted the need for caution. He also stressed that especially in activities that may be associated with criminally sanctioned commerce and businesses, we must be careful. This incident with his son reinforces the message about the risks inherent in cryptocurrencies and the importance of stricter regulation in this emerging sector.
The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.