Calling for a structure to control this “highly speculative asset” that promotes “fun business,” Christine Lagarde once again criticized the use of Bitcoin. The president of the European Central Bank (ECB) has a tough stance on the asset, believing that it fuels the activity of the darknet.
ECB Chief Criticizes Use of BTC
Speaking this Sunday, February 7, on BFM TV during the BFMTVSD show, European Central Bank President Christine Lagarde once again addressed Bitcoin and cryptocurrencies.
While the topics of Diem (ex-Libra) and public blockchains are discussed, Christine Lagarde still sees Bitcoin as a simple speculative asset that robs investors, in addition to being a vector for fueling illegal activities in the darknet.
“As a rule, it is these elements (cryptocurrencies) that are used to finance a number of enterprises carried out on the dark web”, says Christine Lagarde.
Whatever she says about the use of Bitcoin, a recent Chainalysis report shows that the share of cryptocurrency transactions involving criminal activity plummeted between 2019 and 2020. Yes, there is no denying that Bitcoin is used for such purposes, but its share in this activity is minimal.
On the scale of Bitcoin in 2020, only 0.34% of the network’s total transaction volume is related to criminal activity, or almost $ 10 billion. Even if this figure remains important, it tends to decrease over the years, and the PTS is used less and less for this activity.
In addition, since the Bitcoin network is a pseudonym, this feature can even help authorities track criminal networks where it is much more difficult to track cash.
If it’s money, then let them obey the rules
During the program, the topics of the Diem (ex-Libra) project are also discussed. Christine Lagarde is quick to dismiss the idea that Bitcoin and other cryptocurrencies could resemble currencies, but believes Diem could play that role. However, the idea of a euro-backed Diem stablecoin does not appeal to the ECB president:
“Here we can no longer talk about currency. This is Diem, which we used to call Libra, which is Facebook’s attempt to create an exchange element that could be exchanged for a dollar or a euro”, adds Christine Lagarde. “So, no euro, because we do not agree. But the dollar may still be there, “ she says.
In any case, Christine Lagarde recalls that the ECB and all national central banks are now working on large-scale regulation:
“It is absolutely necessary that if an activity is carried out by a private person, and it is similar to ‘money’, it is subject to exactly the same rules, exactly the same ratios, exactly the same supervisory mechanisms as money.”
Thus, regulation on a European or even global scale is always on the agenda. In January last year, Christine Lagarde, has called for international cooperation on this issue.
Finally, Christine Lagarde recalls the work in progress on the digital euro, a product whose real interest she tried to explain during the show.
Source: https://news.bit.team/christine-lagarde-takes-up-bitcoin-and-cryptocurrencies-again/