Cryptocurrencies continue to be warned of worthless

 Christine Lagarde, President of the European Central Bank (ECB), said that digital currencies have no value because they are "based on nothing".

“My humble assessment is that digital currency has no value, as it is based on nothing, there is no fundamental asset to guarantee as an anchor of safety,” Ms. Lagarde told Dutch television. Lan on May 22.

ECB President Christine Lagarde. Photo: Reuters
ECB President Christine Lagarde. Photo: Reuters

According to her, many people are currently pursuing cryptocurrencies with the desire to make a profit but do not understand it well. "I worry people are not understanding the risks of cryptocurrencies. They are the ones who could soon be terribly disappointed to lose everything by investing in them with their life savings," she said.

According to the ECB president, cryptocurrencies need to face more scrutiny from regulators. She argues that regulation not only protects users, but could also threaten broader financial systems globally.

In addition, Lagarde also compared the cryptocurrency to the digital euro that the ECB is working on, which is expected to be completed in about the next four years. According to her, the digital euro is more secure due to the collaterals from the ECB.

Lagarde said it does not currently hold any crypto assets. However, she admits her son is investing in the currency. "He's a free man," she said.

In the past, many other members of the ECB have also voiced their doubts about cryptocurrencies. Fabio Panetta, a member of the ECB's executive board, said in April that he fears cryptocurrencies "are creating a new Wild West," which could trigger an economic crisis similar to 2008.

Many top officials believe that the value of digital currencies like Bitcoin will "go to zero" and advise people not to invest. "Personally, I think Bitcoin has no value. I don't want to say much, it doesn't mean anything to me," Jamie Dimon, JPMorgan chairman and CEO, told CNBC. He also predicted that the authorities of other countries will tighten the management of this currency in the near future.

In mid-December, a representative of the Bank of England also predicted that Bitcoin and other cryptocurrencies "will be worthless" and investors should prepare to lose everything.

According to 99Bitcoins statistics, Bitcoin has 42 times predicted by experts to "die" in 2021. Currently, this digital currency holds the $30,000 mark per coin, down more than 50% from its November peak of $68,000. last.

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