Tag: Christine Lagarde

Fake Video of ECB President Lagarde Admitting to Digital Euro Control

by Blockchain News

A video of European Central Bank (ECB) President Christine Lagarde has been making the rounds on social media, with many believing it to be real. In the video, Lagarde appears to be admitting that a digital euro will be used to control payments in a limited manner. However, it has since been revealed that the video was a fake.

The video was initially shared by the breaking news account Watcher Guru on April 6, and it generated a significant amount of social media chatter. In the video, Lagarde is heard saying that she does not want to rely on an “unfriendly countries currency” or a currency provided by a “private corporate entity like Facebook or like Google.” She goes on to say that she is “personally convinced that we have to move ahead” with the digital euro.

It has since been revealed that the video was taken from a prank video created by a group of individuals who have had similar conversations with other public figures. Harry Potter author J.K. Rowling and former United States President George W. Bush have also fallen victim to similar hoaxes.

The ECB has not yet announced any concrete plans for the development or implementation of a digital euro. However, the idea of a central bank digital currency has been gaining traction in recent years, with many countries exploring the potential benefits and drawbacks of such a system.

A digital euro could potentially provide a number of benefits, including increased financial inclusion, lower transaction costs, and greater security and privacy. However, there are also concerns about the potential risks and challenges associated with such a system, including the possibility of cyber attacks and the need to balance privacy concerns with the need for transparency and accountability.

In light of the recent hoax video, it is important to exercise caution when consuming news and information online. Misinformation and fake news can spread quickly, and it is important to verify the authenticity of sources and information before sharing or acting on it. The ECB has not made any official announcements regarding the use of a digital euro, and any news or rumors should be taken with a grain of salt until confirmed by credible sources.

Source

Tagged : / / / / /

Digital Euro Would Not be Used for Commercial Purposes: Christine Lagarde

by Blockchain News

Christine Lagarde, the President of the European Central Bank (ECB), has given her word that the proposed Central Bank Digital Currency (CBDC) for the region dubbed the Digital Euro will not be used for commercial purposes. 

ECB2.jpg

Speaking at an event in Frankfurt on Wednesday, Lagarde reiterated that the ECB is not designing the Digital Euro in a way that will make it easy for users’ data to be collected and commercialized. Lagarde said the ECB is not in the business of commercializing users’ data, assuring stakeholders that privacy will be a frontline focus for the bank.

The ECB boss cited the data from a survey conducted by the bank back in 2021 in which respondents cited privacy as a major feature they would like to see in a Digital Euro.

With the Digital Euro billed to make a complementary cushion to cash as a payment tool within the EU, Lagarde noted that the ECB is offering “the guarantee that those payments will not be exploited for commercial purposes” and that commercializing a CBDC is typically note “..the business of a central bank.”

With the promise that the Digital Euro, which is currently slated for pilot tests next year, will protect citizens, Lagarde noted that it will be another banknote with a little less anonymity. Most central banks, including the United States Federal Reserve, have highlighted the fact that their CBDCs will be designed with a visible focus on privacy. 

The race to develop a CBDC is one that is now frontline for central bankers who are pushing to stem the dominance of crypto, including Bitcoin and stablecoins as payments. According to the International Monetary Fund (IMF), as many as 100 countries are currently well invested in launching a CBDC.

The race to control central banks’ financial and payment landscape through the launch of a CBDC gained momentum over the past few years, a time within which the Bahamas and Nigeria have both launched a functional digital fiat currency.

Image source: Shutterstock

Source

Tagged : / / / /

Introducing Digital Euro to Protect Monetary Sovereignty amid Cashless Tendency: Lagarde

by Blockchain News

Christine Lagarde, the President of the European Central Bank, and Fabio Panetta, a member of the ECB’s Executive Board, have shared their thoughts on the need for the digital Euro amidst the waning influence of fiat cash.

LARG2.jpg

In a blog post, Lagarde and Panetta identified three major avenues through which the Euro as paper money is no longer in vogue, noting that if left unaddressed, it could affect the overall relevance of the financial landscape of the European Union. As a part of the disruptive financial landscape identified, paper money is now being used relatively less with digital payments offered by the private sector taking centre stage.

Lagarde and Panetta noted that the dependence on private digital payments outfits is risky as private institutions cannot effectively replicate the roles of the central bank. While discrediting traditional private money service firms that their roles will bring in confusion, they noted that stablecoins on the other hand are “vulnerable to runs.”

Another fear the two pointed out is the fact that permitting private payments to dominate can invite non-European solutions and technologies to dominate the EU payment landscape.

Presenting the Digital Euro as the Solution

Lagarde and Panetta, in their submission, posited that only the Digital Euro, a complement to Fiat Euro, can wade off the current threats that are described above.

They pointed out that while the ECB is still working on the design concepts for the Digital Euro – projected to be completed in 2023 – there is a consensus to build the new legal tender, bearing in mind what consumers cherish the most, including “wide acceptance, ease of use, low costs, high speed, security, and consumer protection.”

“Introducing a digital euro would ensure that citizens can continue to trust in the monetary anchor behind their digital payments. It would protect the strategic autonomy of European payments and monetary sovereignty, providing a fall-back solution if geopolitical tensions intensify,” the blog post reads.

The EU is ahead of the curve when it comes to providing a detailed regulatory framework for its emerging crypto and virtual assets industry. While it is looking to promote innovation, it is also not sitting on its oars as it looks to present its CBDC as the dominant payment model in the near future.

Image source: Shutterstock

Source

Tagged : / / / / /

ECB President Christine Lagarde Says Crypto is “Worth Nothing”

by Blockchain News

Christine Lagarde, the President of the European Central Bank (ECB) has re-emphasized her dislike for the digital currency ecosystem, noting that the nascent asset class is highly speculative, risky, and worth nothing.

Webp.net-resizeimage (16).jpg

As reported by Politico, Lagarde shared how she felt about digital currencies in an interview with the Dutch TV show, College Tour, on schedule to be aired this Sunday. In her words;

“I have said all along the crypto assets are highly speculative, very risky assets,” Lagarde said adding, “My very humble assessment is that it is worth nothing. It is based on nothing, there is no underlying assets to act as an anchor of safety.”

The veteran financial expert said she has never invested in any digital currency, a declaration that does not come as a surprise considering other experts in both banking and finance also maintain a similar claim. However, Lagarde confessed that her son had invested in crypto, and came down with little luck.

While slamming cryptocurrencies, Lagarde says the emergence of a Digital Euro, the bloc’s Central Bank Digital Currency (CBDC) will receive her full endorsement seeing it will be backed by the ECB.

“The day when we have the central bank digital currency, any digital euro, I will guarantee it,” she said. “So the central bank will be behind it. I think that is vastly different from any of those things.”

In a manner that is characteristic of senior banking executives, the scorn for cryptocurrencies on the path of Christine Lagarde was more forthcoming. For regulators in the United States like the Securities and Exchange Commission (SEC) chair, Gary Gensler, identifying the subtle distinction in his love for crypto is arduous seeing he has approved a BTC futures-based ETF but has refused to let a spot ETF version fly.

The disagreements about the revolutionary push of crypto are expressed in varying forms, and Lagarde and Gensler have showcased two of the ways one can antagonize crypto within the confines of regulatory measures.

Image source: Shutterstock

Source

Tagged : / / /

Crypto Assets Are Absolutely Not Currencies, According to European Central Bank President Christine Lagarde

by Dailyhodl

European Central Bank (ECB) president Christine Lagarde is drawing a hard line between crypto assets and traditional currencies.

In a new interview on the David Rubenstein show, Lagarde lays out why she believes the word “cryptocurrency” is a misnomer.

ADVERTISEMENT

 

“Cryptos are not currencies – full stop. Cryptos are are highly speculative assets that claim their fame as currency, but they are not.

I think we have to distinguish between cryptos that are highly speculative, suspicious occasionally, and high-intensity in terms of energy usage. Assets, but not a currency.”

Bitcoin’s actual environmental impact is a hotly debated subject, with a recent report from the Bitcoin Mining Council (BMC) stating that in the second quarter of 2021, the use of sustainable energy for Bitcoin mining rose above the 50% barrier.

“The global mining industry’s sustainable electricity mix had grown to approximately 56%, making it one of the most sustainable industries globally.”

In addition, many altcoins are energy-efficient, although their level of decentralization varies. TRG Datacenters compiled a list of what it considers to be the most environmentally friendly crypto assets, with IOTA, XRP, and Chia at the top.

As far as suspicious activity in crypto is concerned, in its latest overview on the real-world use of crypto among bad actors, blockchain analytics firm Chainalysis finds that crypto-related crime dropped to 0.34% of total transaction volume in 2020, down from 2.1% in 2019.

Despite Lagarde’s criticisms of the overall crypto space, she acknowledges that the rise of stablecoins and consumer demand are prompting central banks to formally enter the digital asset space.

“You have those stablecoins that are beginning to proliferate… which are a different animal and need to be regulated, where there is oversight which corresponds to the business that they are actually conducting.

And in all that, you have the central banks who are prompted by the demands of customers to do something that will make the central bank and central bank currencies fit for the century we are in. Which is why we are now all looking at CBDCs, central bank digital currencies.

So that instead of having banknotes and cash in our pockets or in our wallets, we can have exactly the same thing but in a digital form. We want customers to have their preference. If they still want to hold those banknotes and cash, fine.”

Back in February, Lagarde also indicated that a digital version of the Euro is coming.



Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

ADVERTISEMENT

 

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Featured Image: Shutterstock/Open Studio

Source

Tagged : / / / / /

Why ECB President Christine Lagarde’s Latest Stance On Bitcoin Is A Good Thing

by Bitcoin Magazine

European Central Bank (ECB) President Christine Lagarde was interviewed on Bloomberg TV on September 13, which aired yesterday, September 15. Among the topics discussed, which included monetary policy, debt, and gross domestic product (GDP) of countries in the European Union (EU), Lagarde also shared her view on Bitcoin and “cryptocurrencies.”

“Cryptos are not currencies. Full stop,” Lagarde emphatically said in the video. “Cryptos are highly speculative assets that claim their fame as currency, possibly, but they’re not. They are not.”

More than just bashing out at “cryptos,” Lagarde shows a deep need to suffocate something that threatens her job and its agenda. Putting “cryptos” aside, which are indeed not currencies, there is Bitcoin that is not only a currency but has the potential to turn the ECB and other organizations that have the monopoly on money creation worldwide wholly obsolete. But before discussing Lagarde’s agenda as the head of the ECB, the meaning of “currency” needs to be determined.

What Is A Currency?

Merriam Webster’s definition of currency categorizes it as “something that is in circulation as a medium of exchange.” On the other hand, the noun phrase medium of exchange is defined as “something commonly accepted in exchange for goods and services.”

Currency is then something used for someone in exchange for some other product or service. But this medium of exchange role of money is only one of the many characteristics of a good monetary medium. Money also serves as a store of value and a unit of account.

Does this mean Lagarde doesn’t understand what a currency is? Unlikely. As the head of one of the leading central banks globally, it is fair to expect her to know what a currency precisely is. The catch, however, is that it is in her best interest to promote her institution’s and her fellow central banks’ currencies at the expense of others. If Bitcoin were irrelevant and posed no threat to central banks, the ECB President would simply not be talking about it.

Mainstream media will undoubtedly share Lagarde’s remarks, and the general public might even see them as the truth. Well, let it be that way. In the end, it is free press for Bitcoin. People historically selected which monetary goods to use based on the benefits they brought to those utilizing them, but in the past couple hundred years, central banks have dictated what ought to be adopted by determining the mediums with which citizens can pay their taxes — until Bitcoin came along.

Bitcoin Is A Currency

Bitcoin, born just twelve years ago, is long past being magic internet money. The peer-to-peer digital monetary network idealized and invented by Satoshi Nakamoto has grown over the “collectible” status to start being recognized as a store of value. Indeed, high-profile investors in developed economies are stating how superior it is to gold — the best store of value for centuries.

The meaning lies in the historical path monetary goods usually take from inception to becoming accepted and used worldwide. New money historically starts as a collectible item, something a tiny percentage of the population sees value in and purchases for different reasons. As its value increases over time and the money perdures, more people notice, increasing adoption and enabling it to be seen as a store of value. Then, the money is mainly hoarded as more and more people acknowledge its demonstrated ability to increase purchasing power compared to other well-established money in that society. This stage is likely where Bitcoin is currently at.

Investors, companies, and people around the world are waking up to Bitcoin’s value proposition. As adoption increases, the peer-to-peer digital cash will keep progressing in its monetary path to become a widely accepted medium of exchange. Lastly, with sufficient adoption, bitcoin can get recognized as a unit of account.

National currencies are the only kind of currency being used as units of account, each in its own country, due to political mandates and lack of legal options. However, in the medium of exchange side, different goods can often be used as the transacting parties see fit based on their own needs.

This is already playing out in many countries in the world. Kenya, Nigeria, and other African countries are becoming hotbeds for Bitcoin usage as a store of value and a medium of exchange as citizens face currency debasement, monetary colonialism, and scarce access to the banking system. Similarly, in Central America, El Salvador recently adopted bitcoin as a legal tender after the Bitcoin law was enacted last week. Where the majority of the population doesn’t have a bank account, real change is happening with Bitcoin.

Central Banks Fear Bitcoin

Lagarde’s comments on Bitcoin and “cryptos” bring to light the fear of those who currently hold the monopoly of money creation. Their actions of moving towards central bank digital currencies (CBDC) further showcase an attempt to tell the public, “hey, we can be digital too!” But the people won’t be fooled.

Satoshi Nakamoto created parallel money that doesn’t require permission from a central authority to be used. Bitcoin allows people of any background, nationality, religion, and race to access sound money.

Beyond empowering those marginalized by the permissioned monetary system pushed forward by the ECB, the Federal Reserve, and the International Monetary Fund, Bitcoin also provides everyone with an opportunity to be their own masters — something a digital euro or digital dollar will never be able to accomplish.

Bitcoin was created as a direct response to the bailouts given to the banks that caused the subprime crisis in 2008. Big corporations can afford to be reckless because there’s always a friendly central bank to rescue them and pardon their debt while the average citizen pays the price.

But apparently, only now have those central banks noticed the reason why Satoshi Nakamoto and the cypherpunks before him brought Bitcoin to the world, and they can’t help but fear the end of a centuries-long monopoly. They aren’t at ease with the idea of seeing the end of a colossal power that empowers banks, corporations, and influential individuals at the expense of regular citizens who work hard to pay the very taxes that sustain such a system. But the people say no more; because now, they have Bitcoin.

Source

Tagged : / / / / / /

Stablecoins are assets — not currencies, says ECB president

by Cointelegraph

Christine Lagarde, president of the European Central Bank, said all cryptocurrencies, in which she included stablecoins and speculative assets, “are not currencies at all.”

In a Sept. 1 interview with World Economic Forum founder and executive chair Klaus Schwab, Lagarde said cryptocurrencies “present themselves as currencies,” but she still considered them as assets to be regulated and “supervised by asset regulators.” Under this definition, the ECB president claimed fiat-pegged digital currencies were also considered assets.

“Stablecoins are pretending to be a coin, but in fact it’s completely associated with an actual currency,” said Lagarde. “For instance, some of them are saying that they can be used for transactions, but the value will be exactly aligned to the dollar.”

She added that projects behind issuing any stablecoins should be required to fully back their assets with fiat:

“That needs to be checked, supervised, regulated so that consumers and users of those devices can actually be guaranteed against eventual misrepresentation. I think very recent history has shown that those reserve currencies were not always available and as liquid as they were intended to be.”

Lagarde may have been referring to Tether, the largest stablecoin issuer by market capitalization. The company recently agreed to pay $18.5 million in damages and submit to periodic reporting of their reserves until 2023 as part of a settlement with the Office of the New York Attorney General, who alleged that the stablecoin issuer had misrepresented the degree to which its USDT tokens were backed by fiat collateral.

Related: Pandemic has accelerated adoption of digital currency: ECB President

However, despite these seemingly strong opinions on digital assets, Lagarde made it clear the ECB intended to respond to its customers. She has previously criticized stablecoins and cryptocurrencies, but didn’t rule out the possibility the ECB would introduce a central bank digital currency. In July, the ECB’s governing council said it would launch the investigation phase of a digital euro project lasting two years.

“If customers prefer to use digital currencies rather than have banknotes and cash available, it should be available,” Lagarde said. “We should respond to that demand and have a solution that is European based, that is secure, that is available, and friendly terms that can be used as a means of payment.”