According to the European Central Bank’s president, Christine Lagarde cryptos are based on nothing and must be regulated so that people won't put their life savings in the assets.
Related: Gary Gensler believes the SEC should regulate cryptosphere
A Bloomberg report says Lagarde told Dutch television in an interview that in the case of cryptos, there isn't an underlying asset to make the investments safe. Next, she noted being worried about people who don't understand risks related with the investments, and that they may lose their money and be disappointed. Lagarde finds that the industry must be regulated. She made the comments while prices of cryptos are down from their highs.
Currently, Bitcoin trades at around $30,300, and Ether at $2,000.
Along with this, the asset class is seeing scrutiny from regulators. Previously, a member of the Executive Board of the European CB, Fabio Panetta, called for regulations, comparing the sector with the Wild West’s gold rush. While Lagarde is skeptical of crypto's value, she contrasted it with the ECB's digital euro as the CB will be behind it and will be different from many of those things.
The president of the ECB doesn't hold any crypto to follow what she advocates. However, one of her sons investe despite her advice.