Cryptocurrencies are worthless, says European Central Bank President Christine Lagarde.
“My very humble assessment is that it is worth nothing,” Lagarde said of crypto in an interview with Dutch talk show “College Tour” that aired Sunday.
“It is based on nothing,” she added. “There is no underlying asset to act as an anchor of safety.”
Lagarde urged policymakers to regulate the space in order to protect amateur investors who are risking heavy money on digital assets. Cryptocurrencies have had a dramatic market crash this year. Bitcoin, the largest cryptocurrency in the world shed more than half of its value since its all-time high price in November 2021.
“I’m concerned about those people who think it’s going to be a reward, who have no understanding of the risks, who will lose it all, and who will be terribly disappointed, which is why I believe that should be regulated,” Lagarde said.
One audience member in the show said they lost $7,469 after investing in Cardano (ADA), adding: “That hurts.”
