By George Michael Belardinelli - 27 May 2022
You know, in Brussels they have always had an ambiguous position on cryptocurrencies, they are an opportunity but they are not good, BTC is not but CBDCs are, and so on. Last week, however, Christine Lagarde provided a cold shower to the dreams of crypto in Europe.
• Christine Lagarde's son holds cryptocurrencies
• Bitcoin continues to pose a threat to Central Banks
Christine Lagarde's son holds cryptocurrencies
Even without much approval, Christine Lagarde's son owns cryptocurrencies
According to the President of the ECB, cryptocurrencies would be junk and Bitcoin would not rest on any basis of real value, believing that an algorithm is not enough to give a value. But as they say who makes it waits.
On College Tour, a Dutch television program, a viewer from the audience asked the senior executive if he held cryptocurrencies and the answer was as clear and sincere as it was unsettling.
Christine Lagarde said that:
"No, I don't have any crypto because I want to practice what I preach. I actually have a son who has invested in cryptocurrencies, I follow him very carefully. I told him not to keep them but I don't think he will listen to me."
Sincerity has laid the foundations for doubt, but it is also true that children often do not always listen to their parents, even if the mother in question is the head of the ECB.
In addition to this, it must also be said that blockchain and cryptocurrencies are an increasingly important topic and positions about it are constantly evolving.
The strong statements about Bitcoin and crypto clash, in fact, with the opening to CBDCs also known as digital currencies of the Central Bank.
CBDCs are real transformations of each state's fiat currencies into its digital counterpart, and the fact that Brussels bankers like them so much makes one think about how Lagarde's positions might be "clever."
Bitcoin continues to pose a threat to Central Banks
Bitcoin is seen as a threat to the real power of Central Banks, but if the digital currency becomes a currency managed by them then the perspective changes again.
The fight against crypto, in short, raises the doubt that it is an attempt to ward off a threat, an enemy that attacks a long-established and proven central power to which the institutions do not want in any way to give up.
The words spoken about Bitcoin last week were clear:
"It's not based on anything. There is no underlying asset that acts as a security anchor. I have always said that cryptocurrencies are highly speculative and highly risky assets."
In all this remains the fact that in the house of the current head of the ECB they have an internal dispute to solve.
George Michael Belardinelli
Former Corporate Manager at Carifac Spa and later Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about the philosophy and opportunities that innovation and the media make available to us, in fixation with the metaverse and augmented reality.