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On a Dutch talk show, Christine Lagarde said that crypto is “worth nothing,” as there’s no underlying asset that backs the currencies.

The crypto community has fired back at European Central Bank (ECB) President Christine Lagarde for her recent anti-crypto remarks, with people expressing disappointment and even criticizing the euro.

As crypto markets show signs of stagnation, Lagarde reminded the world of her stance on cryptocurrencies. According to her, cryptocurrencies are “worth nothing” because the assets are “based on nothing.” Additionally, she expressed concerns for those who invest in crypto and called for regulation.

Responding to these comments, the crypto community expressed their sentiments. Sheila Warren, CEO of the Crypto Council for Innovation, wrote that she’s disappointed, but not surprised, to hear these comments. According to Warren, the “new digital economy will run on a combination of digital currencies, including crypto, stablecoins and CBDCs [central bank digital currencies].”

Meanwhile, crypto analyst Lark Davis took the opportunity to react to Lagarde’s remarks. Quoting the ECB president, Davis tweeted that instead of describing crypto, she just “described the $euro” because it’s “printed out of thin air.”

Sharing a video showing Lagarde admitting that her son trades cryptocurrencies, Byzantine General called her a dinosaur. Byzantine General tweeted, “How do these dinosaurs not realize it’s over for them. Why keep fighting the future until your last breath.”

Related: WEF 2022: SWIFT probably won’t exist in 5 years, says Mastercard CEO

Earlier this year, the European Commission announced that it’s preparing a digital euro proposal for 2023. The ECB is expected to have a prototype by the end of 2023, and if everything goes well, it may be issued in 2025.

In April, ECB executive Fabio Panetta gave some details on the central bank’s research into central bank digital currencies (CBDCs). According to Panetta, CBDC issuance may “become a necessity.” However, the executive noted that these digital currencies “should not become a source of financial disruption that could impair the transmission of monetary policy in the euro area.

2 thoughts on “ECB president’s anti-crypto comments trigger community responses

  1. Saw it was 14c to the dollar but couldn't find anything online to explain why.

    It's gone as low as 5c to the dollar.

    This is an asset based peg so theoretically it should hold value unless all the collateral also crashed, but as you know the general crypto market has been increasing in dollar value.

    Don't rush to buy the dip yet, there could have been an exploit where either:

    the collateral has been taken or an infinite print of aUSD

    if you had aUSD, good luck to you. If you're looking to gamble by buying “the dip” also good luck to you.

    If anyone has more info please share below.

    Seems like another stable bites the dust.

    P.S – this should not be confused with Alpaca USD, even though it's showing a major depeg on coinmarketcap, the only reason why it's showing the depeg is because an Acala USD pair has been incorrectly added to Alpaca USD.

    update – the iBTC/AUSD pool was exploited to print additional AUSD, the hacker has 1 billion AUSD.

  2. With the current market it seems even harder to find good new projects. The golden days of Reddit seems to have past and I’m seeing less and less legit new projects. That’s probably because of the current market as well, it’s less people in the space. And even less are willing to buy in with the uncertainty of the current world events.

    It’s sad because you see good projects not being able to get through because of all this, where before they would have been extremely successful.

    But I also believe this bear market is a great opportunity to find projects with great use cases to invest in before the bull arrives.

    So I would like some tips of where to start looking, or maybe some projects to research on.

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