Even those who really should know better are not immune to losses by speculating in cryptocurrencies: ECB President Christine Lagarde admitted on Friday in Frankfurt that one of her two sons had gambled away cyber currencies. “He royally ignored me, which is his privilege,” she said. Lagarde is considered a strong critic of cyber currencies. “He lost almost all the money he invested.”
It wasn’t a lot of money; he lost about 60%. “When I had another conversation with him about it, he reluctantly accepted that I was right,” she noted. The central bank chief did not say which of her children, both over 30, made the mistake.
Global regulation of cyber devices needed
“As you can see, I have a very negative opinion about cryptocurrencies,” Lagarde noted. Everyone has the right to invest their money wherever they want. And everyone can speculate as much as they want. But she added: “No one should have the right to participate in criminally sanctioned trade and business.” Lagarde has already advocated strong regulation of cybercurrencies to protect consumers and prevent criminal activities such as money laundering and terrorist financing.
Last year, the European Union (EU) became the first major economic region to reach agreement on cryptocurrency regulation. The framework, called “Markets in Crypto Assets” (MiCA), came into force in June this year. However, full implementation of the regulation is expected to take place by the end of 2024. From Lagarde’s point of view, the MiCA regulation should only be a first step. She has repeatedly advocated for global regulation of cybercurrencies.