Saturday, July 2, 2022

ECB President nominee favors open crypto market

The Takeaway:

The IMF chief and soon to be ECB president, Christine Lagarde has taken a positive instance towards crypto market. Lagarde will assume the position of ECB president from 1st November. She insists on having appropriate regulations for the crypto market and at the same time, allow firms to innovate.

Presidential nominee of European Central Bank and current chief of the International Monetary Fund, Christine Lagarde said that central banks and regulators should be more open to cryptocurrencies. She considers shutting down crypto markets a major mistake. Lagarde has been the managing director of the IMF since 2011.

In a statement to the economic and monetary affairs committee of the European parliament, she said central banks and supervisors need to ensure the safety of the financial sector. But also be open to opportunities by including digital currencies. She insisted on having appropriate regulations to steer technology towards the public good. 

Christine Lagarde suggested that regulators should provide space to firms who are innovating with digital currencies. She acknowledged that these innovations might be prone to criminal activities, but at the same time, they have the potential to bring social good. Lagarde will replace the current ECB president, Mario Draghi.

 Yves Mersch, Member of the Executive Board of the European Central Bank in his speech heavily criticized Facebook’s crypto project Libra. He claimed that the company would have privileged access to private data and they can abusively monetize it. He also said that the company has complete control over the currency distribution network. 

This statement from the IMF chief has come as positive news for the crypto community. Her tenure as president of ECB would be interesting to observe as we can expect some positive changes in the crypto market. Let us know in comments what significant changes Lagarde can bring to the crypto market?

Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Paul Rea
Paul Rea
Paul is a graduate from the Queensland University of Technology and has a demonstrated history of working in the computer and network security industry. Apart from being a dedicated author, Paul also has an interest in graphic designing.

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