ECB chief warns of money-laundering risks from cryptocurrencies

Some digital assets are predisposed to money-laundering risk, said Christine Lagarde, head of the European Central Bank (ECB) at the European University Institute summit [European University Institute].

Lagarde did not name specific cryptocurrencies, but noted that some of them are used for money laundering and financing ‘suspicious activity’. She added that on this issue she is in agreement with the Governor of the Bank of England, Andrew Bailey.

Earlier, the official stated that cryptocurrencies have no intrinsic value, therefore investments in them carry significant risk. In Bailey’s view, the prefix ‘crypto’ and the word ‘currency’ are incompatible.

Lagarde emphasised that crypto assets will not be able to compete with national digital currencies. In her words, central-bank tools being developed will make payments more efficient, cheaper and accessible.

Back in January 2021, the ECB chief described Bitcoin as a speculative asset subject to regulation. In her words, the network of the first cryptocurrency had become a platform for “illicit money-laundering operations”.

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