Christine Lagarde. Source: europeancentralbank / Instagram
European Central Bank (ECB) President Christine Lagarde has revealed that her son endured substantial losses in his investments in cryptocurrencies.
During a town hall event with students in Frankfurt, Lagarde said that despite her strong criticisms of crypto assets, her son chose to invest in them, disregarding her warnings.
“He ignored me royally, which is his privilege,” she stated. “And he lost almost all the money that he had invested.”
“It wasn’t a lot, but he lost it all, he lost about 60% of it. So when I then had another talk with him about it, he reluctantly accepted that I was right.”
Lagarde did not specify which of her two sons, both in their mid-30s, had suffered the losses.
Lagarde has been vocal about her concerns regarding cryptocurrencies, often describing them as speculative and worthless.
She has also highlighted their potential use in illicit activities by criminals.
The ECB, under Lagarde’s leadership, has been advocating for global regulations on crypto assets.
The primary objectives of such regulations are to protect unaware consumers from risks associated with cryptocurrencies and to address the potential loopholes that facilitate funding for terrorists and money laundering by criminals.
The ECB’s concerns about privately issued currencies potentially displacing government money have prompted the bank to initiate its own digital euro project.
However, the launch of a digital euro is still years away, as the bank recently entered the “preparation phase” and expects to take another two years before making a decision on its rollout.
Lagarde’s personal experience with her son’s losses has reinforced her skepticism towards cryptocurrencies.
“I have, as you can tell, a very low opinion of cryptos,” she commented.
While acknowledging individuals’ freedom to invest and speculate, Lagarde emphasized the importance of preventing participation in illegal trades and businesses.
Digital Euro Could Take Two More Years
Back in September, Lagarde said that a digital Euro pilot “will probably take us another two years, at least, before it’s the final say.”
At the time, she also said that a central bank digital currency (CBDC) will not eradicate cash, nor substitute it.
“If it can be user friendly, if it can be free, if it can be a universal digital mode of payment throughout the entire Euro system, I think it will have checked many of the boxes, which I believe would characterize it as success,” she noted.
Lagarde noted that although a lot of work has been done in the last three years in terms of exploring and surveying the Europeans on what they want in terms of a CBDC, “it is not until later in October that the governing council will decide whether we can move ahead with more piloting of the project.”
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