ECB's Lagarde Warns of Bitcoin's Threat to Financial Stability
ECB President Christine Lagarde has issued stern warnings about Bitcoin price, expressing concerns that it could threaten financial stability and undermine confidence in traditional currencies. Her comments come as the ECB progresses with its own digital euro project.
Lagarde dismissed Bitcoin price as 'an instrument entirely driven by speculation' and lacking 'secure means of preserving value over time'. She fears that its growing traction could lead to a loss of control among monetary authorities.
The ECB, however, is actively working on its own digital currency. The digital euro project aims for a launch around mid-2029, with a focus on transparency, privacy, and financial sovereignty. It is designed to work both online and offline, reducing dependence on foreign payment providers. The ECB is coordinating with EU member states and the European Parliament, which is expected to finalize its position by mid-2026.
Debates about the survival of fiat currency in a decentralized world are intensifying. Some analysts argue that the euro's decreasing purchasing power, which has lost over 40% since 2002, erodes household savings and confidence in the currency. Experts are now prompting a deeper debate about Bitcoin's 'store of value' role and the euro's 'medium of exchange' function.
Lagarde's comments highlight the ECB's concerns about Bitcoin price's impact on financial stability. Meanwhile, the ECB's digital euro project progresses, aiming to provide a transparent, private, and sovereign digital currency alternative. The future of fiat currencies and cryptocurrencies remains a topic of intense debate.
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