After a period of truce, it seems that the world of politics and traditional finance has decided to reopen hostilities against cryptocurrency. To testify it is in the last hours the tough attack by Christine Lagarde, with the Governor of the European Central Bank (ECB) who did not hesitate to indicate one in digital assets useful tool exclusively for those who are willing to clean up dirty capital.
This is not a new thesis, which, for example, follows the words of Davide Serra, the founder of Algebris, but which are destined to make a certain impression considering how for some time now virtual money has grown in reputation compared to the beginning.
What did Christine Lagarde say?
According to Chistine Lagarde, cryptocurrencies are used exclusively for money laundering. Precisely for this reason they must be subject to specific regulations. Furthermore, those who invest in them must be careful as they risk losing all the money invested.
It seemed difficult to collect a series of banality like those pitted in rapid sequence by Christine Lagarde. However, it has succeeded in an enterprise that risks reopening the hostilities of the institutional world towards financial innovation.
The speech was given at theEuropean Financial Institute and he basically took up arguments that seemed to belong to another era. If, in fact, virtual money can be a money laundering tool, it has been pointed out by many in recent years that most of the attempts in this direction are carried out through the use of traditional money. And if it is true that cryptocurrencies are very volatile, the same goes for many assets traded daily on the many world exchanges.
Are Lagarde's words a prelude to a resumption of hostilities?
Christine Lagarde's statements don't sound overly surprising, in light of her long-standing attitude towards cryptocurrencies. But I'm there indicator of an increasingly conspicuous discontent in the political and financial world towards a phenomenon that many find it difficult to understand.
In fact, it would be enough to recall the very harsh tones adopted by Janet Yellen during the parliamentary hearing in which his appointment as Secretary of the Treasury for the new Biden administration was to be ratified. Or the hostility shown by some sectors of Capitol Hill in front of diem, the new cryptocurrency from Facebook. Demonstrating how hostilities towards digital assets are not exclusive to the past.
What could happen now?
Christine Lagarde's statements naturally rekindled the fears related to a possible cryptocurrency tightening by governments. Quite well-founded fears, in light of the recent events of the Turkey, where from the beginning of May Bitcoin and Altcoin are practically banned.
If in some parts of the globe digital assets have been identified as a possible tool capable of solving the problems related to hyperinflation or economic blocks imposed by the United States, in particular in Africa and part of theAmerica Latina, in others the policies of governments are progressively stiffening. The reason given is very often that relating to the need to regulate the sector, to avoid abuses. Many prominent personalities of the space crypto, however, they think that instead the objective is precisely the repression of an instrument capable of eliminating a real monopoly, that exercised by the banks. A thesis that actually sounds anything but strange.