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Will the ECB Support Bitcoin?
Recently nominated European Central Bank (ECB) president Christine Lagarde has a history of making statements which cryptocurrency investors interpret as being supportive. In April, Largarde made comments suggesting that financial institutions and regulators are underestimating the potential influence digital currencies could have within the sector. Lagarde cautioned that digital assets are “shaking the system” and while interviewing with CNBC Lagarde elaborated on this point by saying:
I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever…that is clearly shaking the system.”
According to Lagarde, it’s crucial that the current financial system is not disrupted to the extent “that we lose the stability that is needed” and these statements align with Largarde’s comments from a 2017 interview where she cautioned that cryptocurrencies and blockchain technology should not be ignored by the financial sector and international regulators.
Lagarde could Bring a Different Approach
The timeline of Lagarde’s comments have been positively embraced by the crypto community and many are hopeful that as ECB president, Lagarde will enact crypto-supportive legislation that will bode well for the growing sector. Unlike previous ECB president Mario Draghi who often described cryptocurrencies as “highly risky”, Lagarde’s experience as a politician and the diversity of her career experiences could lead her to approach cryptocurrencies differently than her predecessors.
A growing number of institutions are expressing interest in cryptocurrencies and currently, Facebook, J.P. Morgan, Bakkt, and Fidelity Investments are all on the verge of offering investing and custody services to retail and institutional investors.
Lagarde appears to realize that as more multinational corporations, tech startups and multi-billion dollar financial institutions embrace cryptocurrency it will be increasingly important for entities like the ECB to develop a plan for accommodating and interacting with digital assets.
Do you think Lagarde will support BTC and crypto-friendly policies? Share your thoughts in the comments below!
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