European Central Bank Chief Slams Crypto Assets Saying They Are Worthless

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European Central Bank President Christine Lagarde clarified her position on the value of cryptocurrency assets in a recent interview.

Speaking on Dutch TV show College Tour in an interview to be aired on Sunday, May 22, the ECB chief maintained her stance that crypto assets are extremely speculative and very dangerous investments, according to a report by Politics.

“I have always said that crypto-assets are highly speculative and very risky assets. My very humble assessment is that it is worthless. It is not based on anything, there are no underlying assets for act as a safety anchor.

Meanwhile, finance ministers and central bank governors from the seven industrialized countries that make up the Group of Seven (G7) met in Germany on May 19-20. The major talking point was the rapid regulation of crypto assets in the aftermath. recent Terra (LUNA) controversies that have shocked the cryptocurrency market.

ECB ready to raise interest rates

Lagarde also touched on the subject of monetary policy, suggesting once again that the ECB is ready to raise interest rates in July in order to combat runaway inflation in the euro zone.

On the other hand, it looked like it was trying to play down the possibility of a fifty basis point hike, which was a more extreme alternative just offered by Dutch central bank president Klaas Knot.

“We will follow the path of the dead stop [bond] purchases, then sometime after that — which could take a few weeks — raise interest rates,” Lagarde said.

The ECB’s asset purchase program is currently expected to end early in the third quarter, paving the way for an interest rate hike in July.

A 50 basis point increase “is not something I can tell you at this point here today,” she added.

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