European Central Bank (ECB) President Christine Lagarde revealed that one of her sons experienced significant losses in his investments in cryptocurrencies. During a town hall event in Frankfurt with students, Lagarde shared that despite her strong criticisms of crypto assets, her son chose to invest in them, ignoring her warnings.
“He ignored me royally, which is his privilege,” she stated. “And he lost almost all the money that he had invested. It wasn’t a lot, but he lost it all, he lost about 60% of it. So when I then had another talk with him about it, he reluctantly accepted that I was right.”
Lagarde did not specify which of her two sons, both in their mid-30s, had experienced these losses.
Christine Lagarde has consistently expressed concerns about cryptocurrencies, often characterizing them as speculative and lacking intrinsic value. She has also emphasized the potential for cryptocurrencies to be used in illicit activities by criminals. Under Lagarde’s leadership, the European Central Bank (ECB) has been actively advocating for global regulations on crypto assets.
The primary goals of these proposed regulations are to safeguard uninformed consumers from the risks associated with cryptocurrencies and to address potential loopholes that could be exploited for terrorist financing and money laundering.
The ECB’s broader concerns about privately issued currencies possibly undermining government-backed money have led the bank to launch its own digital euro project. This initiative aims to explore the development of a digital version of the euro, reflecting the central bank’s proactive stance on the evolving landscape of digital currencies.
The launch of a digital euro is still several years away, as the European Central Bank (ECB) recently entered the “preparation phase.” The ECB anticipates taking another two years before making a decision on the rollout of the digital euro.
Christine Lagarde’s personal experience with her son’s losses has reinforced her skepticism towards cryptocurrencies. “I have, as you can tell, a very low opinion of cryptos,” she commented. While recognizing individuals’ freedom to invest and speculate, Lagarde emphasized the importance of preventing participation in illegal trades and businesses. Her stance aligns with her broader efforts to promote regulatory measures to protect consumers and address potential risks associated with cryptocurrencies.
Digital Euro Could Take Two More Years
In September, Christine Lagarde mentioned that a digital Euro pilot “will probably take us another two years, at least, before it’s the final say.” During that time, she also emphasized that a central bank digital currency (CBDC) would not eliminate or replace cash.
Lagarde outlined some criteria for success, stating, “If it can be user-friendly, if it can be free, if it can be a universal digital mode of payment throughout the entire Euro system, I think it will have checked many of the boxes, which I believe would characterize it as a success.”
She mentioned that while significant work has been done over the past three years in exploring and surveying Europeans on their preferences for a CBDC, the final decision on whether to proceed with further piloting of the project would be made by the governing council later in October.
