According to the head of the European Central Bank, cryptocurrencies are worthless. However, the digital euro is another coffee

The debacle of LUNA, the token that...
The debacle of LUNA, the token that has become the "Lehman Brothers" of cryptocurrencies

What is the value of cryptoactive assets? The answer depends on the specific asset and obviously who you ask. While the portal CoinMarketCap states that the price of bitcoin is currently at $ 29,235 and ethereum at $ 1,962, according to Christine Lagard, President of the European Central Bank (ECB), all cryptoactive assets are worthless. The portal drew attention to the topic PCMag.

As he informs CNBC, according to the head of the ECB, the cryptocurrencies are simply not worth the leaky groschen. Legard said these harsh words in an interview with the Dutch College Tour show.

In it, Legard certainly did not spare criticism and further stated that cryptomens are simply worthless, because they are highly speculative and very risky assets, which are not covered by anything, so they are based on basically nothing. The ECB official also called on all politicians to introduce certain rules to “protect inexperienced investors” who have decided to invest a considerable amount of their money in this “game”.

You Might Want To Read This:   Londoner Azimo operates XRP with ODL from Ripple

Legard thus unequivocally demands the regulation of cryptocurrencies, which would in a way be able to protect people from losing all their finances.

If you are watching the world of finance and cryptocurrency, you know that this harsh criticism from Legard is not at all surprising. The head of the ECB and the former head of the International Monetary Fund has repeatedly expressed concern about digital currencies. In the past, for example, she was afraid of the impact of digital names on the environment, but also of their misuse in money laundering.

Not all digital currencies are equal

However, it is also worth noting that while Legard is strongly opposed to cryptocurrencies, she has no problem with the digital euro (the ECB’s digital currency) that the European Commission (EC) wants to introduce. According to her, the guarantor will be the ECB institution, so it will be something completely different than a crypto asset.

Freepik (edit by editor)

You Might Want To Read This:   Bakkt cryptocurrency platform opens Bitcoin storage service for customers

In April, the EC announced that launched a targeted consultation on the digital euro. The Commission recalled that the digital euro is, in addition to cash, a digitized form of central bank money that is directly accessible to users. In February of this year, the EC stated that the European Central Bank is working on a “digital euro”, so far it is only testing this currency internally. However, early next year, the EU executive should present a legislative proposal to create a virtual version of euro coins and banknotes.

Cryptocurrency

It is also interesting that these words come after massive fall in cryptocurrencies. The sale of cryptocurrencies even caused a catastrophe at the well-known stablecoin, which was not saved even by a $ 3 billion reserve.

This is, of course, the UST, which has been designed so that its value follows the value of the (real) US dollar, through advanced algorithms and smart contractswhich adjust the supply of issued tokens as needed without the need for reserves, similar to what central banks do.

You Might Want To Read This:   Props received SEC approval for token release

To Kwon, created by UST, through the Luna Foundation Guard (LFG) has accumulated billions of billions of dollars, to support the UST in times of crisis.

Kwon promised in advance that he would use bitcoins in the event of a dramatic drop in UST. However, he later announced on his Twitter that in a futile attempt to save the UST, he missed almost all the bitcoins that were in reserve. According to available information, LFG has 313 bitcoins left, or about $ 9.4 million.