• Wed. Jun 22nd, 2022

ECB President Reveals Digital Euro ‘Guarantee’ After Bitcoin, Ethereum, Crypto Price Crash

ByHazel R. Lang

May 23, 2022

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Firmer ground 🏝️

Cryptocurrency prices seem more stable this week after a quiet weekend. the bitcoins the price edged up slightly, up 1% from this time yesterday, despite a warning that its structure looks “surprisingly similar to the 40% selloff at the end of 2018.”

Ethereum and the rest of the crypto top ten is even better than bitcoin with Ethereum trading 2% and its biggest rivals BNB, solana and gimbal all between 1% and 5%.

Good to know: The future of crypto trading is over

Crypto “is worthless” – ECB president 🤷

Know your worth: European Central Bank (ECB) President Christine Lagarde, an outspoken crypto critic, has said that cryptocurrencies are “worthless”, “based on nothing” and should be more tightly regulated to prevent people from speculate on it with their savings.

Stay humble: “I have always said that crypto-assets are highly speculative and very risky assets,” Lagarde told a Dutch television program in an interview that aired on Sunday and was first reported by Policy. “My very humble assessment is that it is worthless. It is not backed by anything, there are no underlying assets to act as a security anchor.”

Why is this important: While Lagarde has said that cryptocurrencies have no value, she is able to “guarantee” a digital euro because the ECB would back it. The ECB is in the very early stages of developing a digital euro, which is not expected to see the light of day for at least four years. “The day we have central bank digital currency, any digital euro, I will guarantee it – so the central bank will be behind it and I think that’s very different from a lot of these things,” Lagarde said. , referring to bitcoin and other cryptocurrencies.

Zoom out: Lagarde has been watching the cryptocurrency space closely for some time. In April 2019, shortly before taking over the ECB’s top job, she warned that cryptocurrencies were “shaking the system”. “I think the role of disruptors and anything that uses distributed ledger technology, whether you call it crypto, assets, currencies, or whatever… that clearly shakes the system,” she said .

Family matters: Lagarde said she is following the crypto space “very carefully” because one of her sons has invested, against her advice. “He’s a free man,” she said, adding that she hadn’t put any money in any room herself.

Hubris: Elsewhere, the UK’s chief financial regulator has warned against adding crypto markets too quickly to its agency’s turf after the UK government said it wanted to make the UK a hotspot. turning point of cryptography, the FinancialTimes reported. “It is essential that there are strong safeguards to ensure that all interests – not just the interests of people who make money pushing crypto products, but also the interests of people whose savings will be put at risk – be heard,” Charles Randell said in a speech on Friday. “This requires a strong and independent financial conduct regulator.”

Even field: Meanwhile, finance ministers from the world’s seven largest developed economies (G7) have called for crypto markets and businesses to be kept on par with the rest of the financial system, pointing to the collapse of stablecoin terraUSD (UST) as a warning sign. . “The G7 remains committed to high regulatory standards for global stablecoins, under the principle of same business, same risk, same regulation,” the group said in a statement, confirming reports that the Financial Stability Board (FSB) was asked to speed up its work following the collapse of the UST and the ensuing crypto crash.

Now read this: Crypto may have an insider trading problem

🚨🚨 Hacked Beeple

🎨 The Twitter account of digital artist Beeple, who last year helped the non-fungible token (NFT) craze explode into the stratosphere with his record $69 million NFT sale, was hacked during weekend and used to promote a crypto scam.

📤 “Beeple’s Twitter account has been compromised (ATO) for posting a phishing website to steal funds,” a security researcher posted on Twitter early Sunday morning, along with a screenshot of the message from the pirate.

💰 Victims were tricked into sending at least 35 ethereum, worth over $70,000, to the fraudulent address, it was reported by The block.

Good to know: Former BitMEX CEO Arthur Hayes sentenced to two years probation

The week ahead 🗓

👀 Watch for these cryptocurrency and crypto-adjacent events this week.

🏞 After kicking off yesterday, this year’s postponed World Economic Forum (WEF) in the Swiss mountain town of Davos continues through Thursday, with business and political leaders already generating plenty of somber headlines.

– Ripple SVP says crypto winter offers opportunity to build

🇳🇴 Alongside Davos, the Oslo Freedom Forum is being held today through Wednesday with some big names in bitcoin and crypto on the list of speakers, including Economist Lyn Alden, Managing Director of Strike Jack Mallers and Lightning Labs CEO Elizabeth Stark.

💻 Stock markets are set to be lifted by the latest Q1 results this week, with hard-hit retailers and pandemic-era winners in the spotlight. video conferencing company Zoom reports today.

🧑‍⚖️ Craig Wright (who claims without proof to be the mysterious creator of Bitcoin, Satoshi Nakamoto) gets another day in court today as his trial against podcaster Peter McCormack begins in the High Court in London. Wright is suing McCormack over tweets he deems defamatory.

– Dr. Bitcoin’s lawyers ready for courtroom jamboree

🐦 Twitter holds its annual general meeting on Wednesday amid Elon Musk’s stalled takeover bid. Expect fireworks.

🏦 Also on Wednesday, the Federal Open Market Committee of the Federal Reserve releases the minutes of its May meeting, potentially highlighting officials’ thinking on interest rate hikes and inflation.

Now read this: Crypto is starting to lose its cool – just look at El Salvador

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