The president of the European Central Bank (ECB), Christine Lagarde, has called for the global regulation of bitcoin. She said that bitcoin is a highly speculative asset and has “conducted some funny business.” Emphasizing the need for countries to work together to regulate bitcoin, she suggested that the crypto regulation could be “initiated by the G7, moved into the G20 and then enlarged.”
ECB Chief Calls for Bitcoin Regulation Globally
ECB President Christine Lagarde said in an interview at the Reuters Next conference Wednesday that bitcoin is “a speculative asset by any account.” She added: “I mean, when you look at the most recent developments upward and now the most recent downward trend, it’s for those who had assumed that it might turn into a currency. Terribly sorry, but this is an asset.” The ECB chief elaborated:
It’s a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.
“I think that there are criminal investigations that have taken place that I’m sure will continue to take place that demonstrates it very clearly. And there has to be regulations. And this has to be applied and agreed upon,” she continued. However, she did not clarify what investigations she was referring to.
Calling for regulation specific to bitcoin, Lagarde said:
It’s a matter that needs to be agreed at a global level, because if there is an escape, that escape will be used. So, I think … that global cooperation, multilateral action is absolutely needed, whether it’s initiated by the G7, moved into the G20 and then enlarged.
“But, it’s something that needs to be addressed,” she emphasized, adding that the Financial Action Task Force (FATF) “is clearly an organization that has expanded in that respect.”
Lagarde’s remarks about bitcoin drew many comments. Financial analyst Dan Tapeiro wrote, “Embarrassing for Lagarde….