Economist Slams Bitcoin Comments Chief Lagarde Bitcoin Dangerous for Cryptocurrency Regulation – Bitcoin News Regulation

Responding to recent remarks by European Central Bank (ECB) President Christine Lagarde about bitcoin, the chief economist at investment firm Tressis said what Lagarde suggested was “disgraceful” and “dangerous” for cryptocurrency regulation.

Economist says governments would be happy to implement strict crypto regulations

Daniel Lacalle, fund manager and chief economist at Tressis Gestion, echoed Christine Lagarde’s recent comments about bitcoin and crypto regulation in an interview with NTD Business on Sunday. Tressis Gestion provides investment management, financial planning, investment strategies, and customer advisory services in Spain.

“Ms Lagarde clearly does not have the power to enact legislation in relation to cryptocurrencies,” he began. However, the economist admitted that the ECB president “is an important voice in Europe and a very important voice in the financial world. Therefore, his comments are heard. ”

Lacalle believes that “many governments would be very happy to implement stringent regulations on cryptocurrencies,” noting that it is “fundamental because, as we are seeing, cryptocurrencies are rising dramatically in response to a very aggressive policy from central banks. ” He added that “The European Central Bank is probably the most aggressive monetary policy maker of them all,” emphasizing that “its balance sheet is already 61% of the euro’s GDP, while the Fed about 34% for example The economist elaborated:

Central banks do not like competition when creating money and cryptocurrencies are obviously a competition and a result of these aggressive monetary policies.

Lagarde’s Comments About Bitcoin are ‘Extremely Dangerous’ and ‘Scandalous’

When asked how regulations would affect crypto investors, Lacalle stressed that “regulation is not bad if it is to facilitate transparency” and improve access to crypto assets for small investors. For regulations that improve the “level of transparency, liquidity and asset availability,” he said, “That’s fine.”

However, the economist warned: “I think the problem is that when they talk about regulations here, it’s a more implicit intervention or ban, an outright ban. For example, exclude the possibility of using financial measures to buy bitcoin or ethereum or other cryptocurrencies as we have seen in some economies. I think that is a dangerous path. The fund manager said:

I think it is extremely dangerous that a central bank president implies that almost all investors in cryptocurrencies in some form are trying to hide money laundering activities.

“That is absolutely disgraceful when we all know that the vast majority of money laundering globally is conducted in fiat currency, especially in US dollars and euros,” he stressed.

Lagarde also said that bitcoin is “a highly speculative asset, which has carried on some funny business and some interesting and understandable money laundering activity.”

Responding to the comments of the head of the ECB, Lacalle opined, “you do not hear a central bank president or a central bank governor saying it is understandable and condemning the whole currency, be it US dollars, yuan, yen, euro , in any event, because a small proportion of consumers of that currency may be using it for money laundering purposes. In addition, he asserted:

You can’t just make the equivalent of money laundering and bitcoin or money laundering and cryptocurrencies being the same thing. That, I think is very negative and definitely not correct.

The economist suggested “Central banks should look at cryptocurrencies as a response to what they are doing,” pointing out that their actions are “absolutely incredible in terms of money supply growth and the impact on financial assets.” In conclusion, he suggested:

Central banks should be extremely concerned about the bubble in sovereign bonds and not about what cryptocurrencies are doing.

Do you agree with Lacalle? Let us know in the comments section below.

Tags in this story

Bitcoin, Bitcoin regulation, BTC, Central Banks, Christine Lagarde, Crypto regulation, cryptocurrency regulation, ECB, ecb bitcoin, lagarde bitcoin, Money Laundering

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, nor a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.

Source