Cryptocurrencies continue to be warned of worthless

Christine Lagarde, President of the European Central Bank (ECB), believes that digital currencie

According to her, many people are currently pursuing cryptocurrency with the desire to make a profit but do not understand it well. "I worry that people are not understanding the risks of cryptocurrencies. They are the ones who could soon be terribly disappointed to lose everything by investing in them with their life savings," she said.

According to the ECB president, cryptocurrencies need to face more scrutiny from regulators. She argues that regulation not only protects users, but could also threaten broader financial systems globally.

In addition, Ms. Lagarde also compared the cryptocurrency to the digital euro that the ECB is working on, which is expected to be completed in about the next four years. According to her, the digital euro is more secure due to the collaterals from the ECB.

Lagarde said it does not currently hold any crypto assets. However, she admits her son is investing in the currency. "He's a free man," she said.

Previously, many other members of the ECB also voiced their doubts about cryptocurrencies. Fabio Panetta, a member of the ECB's executive board, said in April that he fears cryptocurrencies "are creating a new Wild West," which could trigger an economic crisis similar to 2008.
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