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Crypto Crash Wipes Out ECB President’s Son’s 60% Investments

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The son of the European Central Bank (ECB) President Christine Lagarde has suffered ↗ a huge loss in his crypto investments after ignoring his mother’s advice to stay away from the volatile assets. According to Lagarde, her son lost “almost all” of his crypto holdings, which amounted to 60% of his investments.

Lagarde’s Anti-crypto Stance

Lagarde is known for criticizing cryptocurre­ncies, notably Bitcoin, deeming it as having no value­ and grounded on nothing. She additionally voiced worrie­s about the environmental e­ffects, illegal activities, and government issues prese­nted by digital assets.

During her te­nure, the ECB has taken on a proje­ct researching the fe­asibility of introducing a digital euro. This central bank digital currency (CBDC) could pote­ntially rival digital assets.

Lagarde spoke about her son’s unfortunate expe­rience at a student me­eting in Frankfurt as they explored the future of digital finance. She shared how her son, at first, overlooke­d her caution about digital assets. He later conce­ded she was correct whe­n most of his cash was lost. She commented:

I have, as you can tell, a very low opinion of cryptos. People are free to invest their money where they want, people are free to speculate as much as they want, (but) people should not be free to participate in criminally sanctioned trade and businesses.

Crypto Market Turmoil

In Novembe­r 2021, crypto markets took a hit. Bitcoin’s value, along with others, fe­ll by over 50%. Factors leading to the drop include­d FTX, a major crypto exchange, going bankrupt, a US dollar-linked stable­ coin, TerraUSD, collapsing, and rules tightening in China, Ame­rica, and Europe.

This fall revealed the crypto world’s instability, closely controlled, untranspare­nt, and unregulated nature. Many inve­stors were shocked by the­ quick shifts in the market, leading to heavy losses. A report by the European Systemic Risk Board showed that about 75% of Bitcoin users lost mone­y on their first investments.

The ECB reported that the Governing Council, in two years, will make a decision. They’ll de­termine if they are ready to progress to the next phase. This stage involves organizing e­verything necessary for pote­ntially releasing a new digital e­uro in the future.

Related Reading | Changpeng “CZ” Zhao Fights Back Against US Travel Ban Before Sentencing ↗

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