KEY POINTS

  • Lagarde said she hasn't invested in cryptocurrencies but her son has
  • 'There are no underlying assets to act as an anchor of safety,' she says
  • Bill Gates condemns crypto: 'I like investing in things that have valuable output'

European Central Bank (ECB) President Christine Lagarde has said blockchain technology-based assets have no tangible value but threw her weight behind a digital euro.

Following the boom of cryptocurrencies and NFTs in 2021, several investors and regulators have failed to understand if these blockchain-based assets have any value in the real world while many have associated the $1.2 trillion worth of crypto space with a number of opportunities like the metaverse.

"I have said all along the crypto assets are highly speculative, very risky assets," Lagarde said in an interview on a Dutch television show on Sunday. "My very humble assessment is that it is worth nothing. It is based on nothing, there are no underlying assets to act as an anchor of safety."

Lagarde also said that she has never invested in cryptocurrencies but her son has. The comments come at a time when the entire crypto space is under the influence of bears with Bitcoin (BTC), the world's biggest cryptocurrency, forming eight consecutive bearish weekly candles.

Legarde said that the creation of a digital euro, a central bank digital currency (CBDC), is an entirely different story.

"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."

The ECB launched a year-long investigation into a digital euro in July 2021, involving prototype and conceptual framework. The European Commission has launched a consultation on digital euro where stakeholders can voice their opinions until June 14.

Microsoft founder Bill Gates also disowned cryptos on his official Reddit page. During a recent AMA or Ask Me Anything hosted by the billionaire, he was asked if he owns any cryptocurrency.

"I don't own any," he said. "I like investing in things that have valuable output. The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments."

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