Fun

Economist Slams ECB Chief Lagarde’s Bitcoin Remarks as Dangerous for Cryptocurrency Regulation

News Feed - 2021-01-20 11:01:15

Economist Slams ECB Chief Lagarde’s Bitcoin Remarks as Dangerous for Cryptocurrency Regulation


Responding to European Central Bank (ECB) President Christine Lagarde’s recent remarks about bitcoin, the chief economist at investment firm Tressis said what Lagarde implied was “outrageous” and “dangerous” for cryptocurrency regulation. Economist Says Governments Would Be Happy to Implement Strict Crypto Regulations


Daniel Lacalle, fund manager and chief economist at Tressis Gestion, commented on Christine Lagarde’s recent remarks about bitcoin and crypto regulation in an interview with NTD Business on Sunday. Tressis Gestion provides investment management, financial planning, investment strategies, and advisory services to customers in Spain.


“Obviously, Ms. Lagarde does not have the power to implement legislation relative to cryptocurrencies,” he began. However, the economist admitted that the ECB president “is an important voice in Europe and a very important voice in the financial world. So, her comments are heard.”


Lacalle believes that “numerous governments would be very very happy to implement strict regulations on cryptocurrencies,” noting that it is “fundamentally because, as we are seeing, cryptocurrencies are rising dramatically as a response to a very aggressive policy from central banks.” He added that “the European Central Bank is probably the one that’s conducting the most aggressive monetary policy of them all,” emphasizing that “Its balance sheet is already 61% of the GDP of the eurozone, while for example the Fed’s is about 34%” The economist elaborated: Central banks don’t like competition in the creation of money and obviously cryptocurrencies are competition and are a consequence of these aggressive monetary policies. Lagarde’s Remarks About Bitcoin Are ‘Extremely Dangerous’ and ‘Outrageous’


When asked about how regulations would affect crypto investors, Lacalle emphasized that “regulation is not bad if it is to facilitate transparency” and to improve access to crypto assets for small investors. For regulations that improve the “level of transparency, liquidity and the availability of an asset,” he said, “That is fine.”


However, the economist warned: “I think that the problem is when they talk about regulations here, it’s more implying intervention or prohibition, complete prohibition. For example, banning the possibility of using financial measures to buy bitcoin or ethereum or other cryptocurrencies as we have seen in some economies. I think that is a dangerous path.” The fund manager exclaimed: I think that it’s extremely dangerous that the president of a central bank implies that almost all of the investors in cryptocurrencies are in some forms trying to hide money laundering activities.


“That is absolutely outrageous when we all know that the vast majority of money laundering globally is conducted in fiat currencies, particularly in U.S. dollars and euros,” he emphasized.



Lagarde also said that bitcoin is “a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.”


Responding to the ECB chief’s remarks, Lacalle opined, “you don’t hear the president of a central bank or the governor of a central bank say that it’s reprehensible and condemning an entire currency, be it the U.S. dollar, the yuan, the yen, the euro, whatever, because a small proportion of the users of that currency may be utilizing it for money laundering purposes.” Moreover, he asserted: You cannot just make the equivalent that money laundering and bitcoin or money laundering and cryptocurrencies are one and the same. That, I think is very negative and definitely not correct.


The economist suggested that “Central banks should look at cryptocurrencies as a response to what they are doing,” pointing out that their actions are “absolutely incredible in terms of money supply growth and in terms of the impact on financial assets.” In conclusion, he suggested: Central banks should be extremely concerned about the bubble in sovereign bonds and not about what cryptocurrencies are doing.


Do you agree with Lacalle? Let us know in the comments section below. Bithumb CEO Predicts Only Four to Seven South Korean Crypto Exchanges Will Survive New Rules REGULATION | 54 mins ago European Parliament Petitioned to Create Crypto Crime Compensation Fund REGULATION | 23 hours ago Tags in this story Bitcoin, Bitcoin regulation, BTC, Central Banks, Christine Lagarde, Crypto regulation, Cryptocurrency regulation, ECB, ecb bitcoin, lagarde bitcoin, Money Laundering


Image Credits: Shutterstock, Pixabay, Wiki Commons Spot-markets for Bitcoin, Bitcoin Cash, Ripple, Litecoin and more. Start your trading here. Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Crypto Market Enters Step 2 Of Benjamin Cowen’s Guide For 2025, What’s Next On The List?
Este artículo también está disponible en español. According to a recent analysis by Benjamin Cowen, CEO and Founder of ITC Crypto, the crypto market has entered “Step 2
Alice Ivey12 hours ago5 blockchain-based social media platforms to knowDiscover five blockchain-based social media platforms that are reshaping online interactions.1201 Total views4 Total sharesListen to article 0:00Over
Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate
Portuguese Parliament Rejects Crypto Tax Proposals During Budget Debate Two proposals to tax crypto assets have failed to gain support from Portuguese lawmakers who are now discuss
macOS of blockchains? Solana captures 60% of new DEX volume in May
Ana Paula Pereira6 hours agomacOS of blockchains? Solana captures 60% of new DEX volume in MaySolana’s market share on decentralized exchanges rose from 0% in early 2021 to 24% in May 2024, thanks to a similar approach
Bitcoin․com Exchange Market Insights Report for April 2022
Bitcoin․com Exchange Market Insights Report for April 2022 This is the inaugural monthly market insights report byBitcoin.com Exchange. In this and subsequent reports, expect to
Libra: Friend or Foe? Worst Case Scenario Post-Congressional Hearings
Facebook is in the hot seat this week, as Congress asks burning questions about the company’s Libra “cryptocurrency.” I use quotes, because in the purest sense, a cryptocurrency is decentralized, trust
Brayden Lindrea6 hours agoBitcoin is a ‘super logical’ step on the tech tree — OpenAI CEODuring an episode of The Joe Rogan Experience, Sam Altman expressed his excitement for Bitcoin and said he was “super again
US Faces More Inflation Woes as CPI Hits Highest Record in 30 Years
US Faces More Inflation Woes as CPI Hits Highest Record in 30 Years U.S. inflation continues to roar higher as this week’s data from the consumer price index (CPI) jumped 6.
Runes are offering a significant lifeline for Bitcoin miners — TeraWulf COO
Zoltan Vardai14 hours agoRunes are offering a significant lifeline for Bitcoin miners — TeraWulf COOThe transaction fees are the “wild card” for Bitcoin miners, with the current increase representing a crucial reve
Derek Andersen4 hours agoMIT Digital Currency Initiative introduces at-scale, programmable CBDC platformPArSEC — short for “parallelized architecture for scalably executing smart contracts” — runs on the ERC-20
Crypto hackers buy Ethereum dip using stolen funds
Arijit Sarkar1 hour agoCrypto hackers buy Ethereum dip using stolen fundsHackers exploit the market crash, using stolen funds from the 2022 Nomad bridge hack to purchase 16,892 ETH at a significant discount.3436 Total vi
Technical Analysis: Terra Luna Drops 20%, While Symbol Token Climbs on Friday
Technical Analysis: Terra Luna Drops 20%, While Symbol Token Climbs on Friday Terra (Luna) was one of this week’s biggest crypto losers, falling by as much as 20% during Fri