ECB chief: Bitcoin is speculative and requires regulation

The head of the European Central Bank (ECB) Christine Lagarde called Bitcoin a speculative asset in need of regulation.

ECB President Christine Lagarde called for global regulation of #Bitcoin, saying the digital currency had been used for money laundering activities in some instances and that any loopholes needed to be closed. Follow #ReutersNext updates here: https://t.co/4MgFy4jnw5 pic.twitter.com/qlBtoDuZLW

— Reuters (@Reuters) January 13, 2021

According to her, the network of the first cryptocurrency has become a platform for ‘a funny business and completely reprehensible money-laundering operations’. During a Reuters Next conference, Lagarde urged countries to cooperate to develop global rules.

‘Obviously, this is something that the Financial Action Task Force (FATF) should handle,’ Lagarde said.

Lagarde also said that no fewer than eight thousand experts had participated in public discussions about creating a digital euro.

The ECB chief did not specify concrete timelines for the asset’s launch, noting that a lengthy period would be required to devise a safe solution. Lagarde expressed hope that it would take no more than five years.

In December, the ECB chief warned that the spread of stablecoins threat to financial stability and monetary sovereignty.

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