Christine Lagarde claims that Digital currencies and DeFi may be a real threat to financial stability!

Latest Bitcoin and Altcoin News – European Central Bank President Christine Lagarde has recently claimed that digital assets and DeFi could pose a real threat to financial stability. According to Lagarde, this could happen if cryptocurrencies play a greater role in the broader economy. She believes that the links between crypto and legacy finance are still limited. The European Central Bank supports the rapid adoption of the Markets in Crypto-Assets (MiCA) framework. The comprehensive regulatory framework is expected to be implemented in 2024. Lagarde also added that Mica II, a new version of the regulatory system, could potentially cover cryptocurrency staking and lending.

It is noteworthy that Lagarde recently stated that cryptocurrencies are “based on nothing,” and is concerned about people “who have no understanding of the risks, who will lose it all and who will be terribly disappointed.  Lagarde acknowledged that she is skeptical about the value of crypto assets, as opposed to a central bank digital currency (CBDC) such as the digital euro, which the European Central Bank (ECB) is planning to issue within the next few years. As for cryptocurrency, she added:

“My very humble assessment is that it is worth nothing, it is based on nothing, there is no underlying asset to act as an anchor of safety”

Source: u.today

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