ECB's Lagarde Slams Bitcoin as 'Highly Speculative' Ahead of Digital Euro Decision
Christine Lagarde, President of the European Central Bank (ECB), has expressed strong criticism of Bitcoin, describing it as highly speculative and risky. She recently shared her views at the 'College Leaders in Finance' event in the Netherlands, just as the ECB council prepares to decide on the digital euro project in late October.
Lagarde believes Bitcoin lacks intrinsic value and is not backed by any central authority, unlike the proposed digital euro. She predicts social media backlash for her stance, having distanced herself from the 'digital gold' label often associated with Bitcoin. Despite her son's investment in cryptocurrencies, Lagarde expresses concern for those who underestimate the risks.
The ECB council will determine in late October whether to proceed with the digital euro project, with a pilot phase planned. Legislation is expected to pass through the European Parliament by May 2026. Lagarde hopes the digital euro will be introduced by the end of her term in October 2027, offering a stable and regulated alternative to cryptocurrencies like Bitcoin.
Lagarde acknowledges Bitcoin's potential success but remains skeptical about its long-term stability. An economics student named Jordy, with over 90% of his portfolio in BTC, defends Bitcoin's value as a store of value in an inflationary environment.
Christine Lagarde's criticism of Bitcoin has reignited debate around cryptocurrency concepts' value and stability. As the ECB council considers the digital euro, Lagarde's hopes for a regulated and guaranteed digital currency contrast with her skepticism towards Bitcoin. While Bitcoin's future remains uncertain, its proponents continue to advocate for its role as a store of value.
