Worthless Bitcoin? Cryptokender Jilch on Lagarde’s claim

Business cryptocurrencies

“Unfortunately, the digital euro is another step towards surveillance”

“Cryptocurrencies are worthless,” said ECB President Christine Lagarde

Source: REUTERS

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Following the rapid collapse of Bitcoin & Co. ECB President Christine Lagarde is in favor of regulation. Cryptocurrency Niko Jilch classifies her statement: he says the supposed concern for investor welfare hides the real intent behind it.

EIn an interview with Dutch television, ZB President Christine Lagarde spoke out in favor of regulating cryptocurrencies to prevent people from speculating about them with their savings. She said she is concerned about people “who do not understand the risks that will lose everything and be terribly disappointed and that is why I believe this should be regulated”.

Cryptocurrencies are “worth nothing,” Lagarde said. They are based on nothing and there is “no underlying asset that acts as a safety anchor”. Bitcoin expert Niko Jilch classified Lagarde’s statements for WELT.

WORLD: Mr. Jilch, ECB President Christine Lagarde, has spoken out in favor of regulating cryptocurrencies, saying they are “worthless”. In fact, Bitcoin and Co. lost a lot of value in the last few months. Is Lagarde currently using it to reject money that competes with paper currencies – or is the warning justified?

“Bitcoin and ‘crypto’ are basically two different things,” says financial expert Niko Jilch

Source: Incubator

Niko Jilch: It’s important to distinguish between Bitcoin and “crypto” – these are basically two different things. Bitcoin is a new money system that governs itself and runs according to its own rules. “Crypto” are often companies disguised as decentralized systems that hide behind structures and yes, often rip people off. So as for Ethereum, Solana, Cardano or most recently Luna, I agree with Lagarde – there is nothing behind it. Promises are made that are not kept. They are basically extremely risky venture capital investments.

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WORLD: And Bitcoin is different?

Jilch: It is decentralized and has a clear advantage as an open money system. I do not get the impression that Lagarde understood the importance of Bitcoin. Nor should she. It should just scare us, so we accept the digital euro as an “alternative” when it comes. The digital euro is the opposite of Bitcoin.

WORLD: This will surprise many who have so far considered the digital euro as an officially approved alternative to Bitcoin.

Jilch: That’s how people like to sell it, but of course it is not. The digital euro is centralized, its future and monetary policy uncertain and decided by a council, just like the analogue euro. With Bitcoin, all of this is transparent and fixed. The digital euro will also not be as open as bitcoin. But most importantly, it will not protect our privacy, as cash does at the moment. Unfortunately, this is another step towards surveillance – and therefore many are against it.

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WORLD: Do you have the impression that Mrs Lagarde would distinguish between Bitcoin and other cryptocurrencies in her critique?

Jilch: No, absolutely not. It sees everything as a “crypto sector”, which is simply wrong. In truth, we are dealing with an original and 10,000 imitators who want to be like the original, but at the same time pretend to be even better.

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WORLD: Lagarde is in favor of regulating cryptocurrencies, she says, to discourage people from speculating with their savings. During her previous tenure, one did not get the impression that the fate of the savers was important to Lagarde. How credible is the rationale for your claim?

Jilch: The question describes the problem very well. Lagarde also said we should worry less about our savings and be happy when we have a job. As if it was her thanks. It’s actually an insult. If central banks did not dilute the value of money on every occasion, speculation – regardless of asset class – would not be so intense. The ECB’s monetary policy is to blame for speculation, not “crypto” – it’s just a symptom. But again, this is extremely dangerous and I would advise against investing their money there. If digital money, then Bitcoin – and only very carefully and slowly.

Niko Jilch is a financial journalist, podcaster and YouTuber focusing on Bitcoin and the monetary system. He lives and works in Vienna. The interview with him took place in writing.

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