Christine Lagarde, the President of the European Central Bank has once again thrown scorn on cryptocurrencies, calling them “highly speculative” and “suspicious”.
Central banks are absolutely against cryptocurrencies. Why? Because they threaten their existence – they hold the answer to the broken world of the debt-based ponzi scheme called fiat currencies.
Lagarde listened with tight lipped disapproval, as she was interviewed on Bloomberg TV. The interviewer was asking if she thought that cryptocurrencies were a good thing for the global economy.
The Central Bank President adamently stated that cryptocurrencies aren’t currencies.
“Cryptos are highly speculative assets that claim their fame as currency, possibly, but they’re not. They are not!”
The president then went on to say that they were “suspicious occasionally” and used the dog-eared old war cry of “high intensity in terms of energy consumption”. She continued by saying:
“On the other hand, you have those stablecoins that are beginning to proliferate, which some big techs are trying to promote and push along the way, which are a different animal and need to be regulated where there has to be oversight”
She then put forward how central banks would answer to the demand from customers for central bank currencies that would be the perfect fit for this century.
“This is why we are now all looking at CBDCs (Central Bank Digital Currencies), so that instead of having bank notes and cash in our wallets, we can have the same thing but in a digital form.”
Lagarde said that the CBDCs would work side by side with the existing physical cash system so that customers could choose what worked better for them.
Once again, there is no mention of the failings of the fiat system by Lagarde. Of course, there probably just couldn’t be, given that to admit to the failings would be a massive boost to cryptocurrencies, which in many areas, are doing a far better job.
Cryptocurrencies certainly aren’t perfect. Many problems need to be ironed out as this nascent industry grows. However, the fiat monetary system is utterly broken, and only serves the wealthy, the banks, and those in power.
It’s only a matter of time before technology puts such an arcane system into the trash can of history. Regulators, spurred on by the big banks, may well put a few spanners in the works, but it is hoped that monetary freedom will prevail in the end.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.