![\"Economist](\"https:\/\/www.cryptocabaret.com\/wp-content\/uploads\/2021\/01\/economist-lagarde-768x432.jpg\")
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Responding to European Central Bank (ECB) President Christine Lagarde\u2019s recent remarks about bitcoin, the chief economist at investment firm Tressis said what Lagarde implied was \u201coutrageous\u201d and \u201cdangerous\u201d for cryptocurrency regulation.<\/strong><\/p>\n Daniel Lacalle, fund manager and chief economist at Tressis Gestion, commented on Christine Lagarde\u2019s recent remarks about bitcoin<\/a> and crypto regulation in an interview with NTD Business on Sunday. Tressis Gestion provides investment management, financial planning, investment strategies, and advisory services to customers in Spain.<\/p>\n \u201cObviously, Ms. Lagarde does not have the power to implement legislation relative to cryptocurrencies,\u201d he began. However, the economist admitted that the ECB president \u201cis an important voice in Europe and a very important voice in the financial world. So, her comments are heard.\u201d<\/p>\n Lacalle believes that \u201cnumerous governments would be very very happy to implement strict regulations on cryptocurrencies,\u201d noting that it is \u201cfundamentally because, as we are seeing, cryptocurrencies are rising dramatically as a response to a very aggressive policy from central banks.\u201d He added that \u201cthe European Central Bank is probably the one that\u2019s conducting the most aggressive monetary policy of them all,\u201d emphasizing that \u201cIts balance sheet is already 61% of the GDP of the eurozone, while for example the Fed\u2019s is about 34%\u201d The economist elaborated:<\/p>\n Central banks don\u2019t like competition in the creation of money and obviously cryptocurrencies are competition and are a consequence of these aggressive monetary policies.<\/p>\n<\/blockquote>\n When asked about how regulations would affect crypto investors, Lacalle emphasized that \u201cregulation is not bad if it is to facilitate transparency\u201d and to improve access to crypto assets for small investors. For regulations that improve the \u201clevel of transparency, liquidity and the availability of an asset,\u201d he said, \u201cThat is fine.\u201d<\/p>\n However, the economist warned: \u201cI think that the problem is when they talk about regulations here, it\u2019s more implying intervention or prohibition, complete prohibition. For example, banning the possibility of using financial measures to buy bitcoin or ethereum or other cryptocurrencies as we have seen in some economies. I think that is a dangerous path.\u201d The fund manager exclaimed:<\/p>\n I think that it\u2019s extremely dangerous that the president of a central bank implies that almost all of the investors in cryptocurrencies are in some forms trying to hide money laundering activities.<\/p>\n<\/blockquote>\n \u201cThat is absolutely outrageous when we all know that the vast majority of money laundering globally is conducted in fiat currencies, particularly in U.S. dollars and euros,\u201d he emphasized.<\/p>\n <\/ins> <\/ins> <\/p>\n Lagarde also said that bitcoin is \u201ca highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible<\/a> money laundering activity.\u201d<\/p>\n Responding to the ECB chief\u2019s remarks, Lacalle opined, \u201cyou don\u2019t hear the president of a central bank or the governor of a central bank say that it\u2019s reprehensible and condemning an entire currency, be it the U.S. dollar, the yuan, the yen, the euro, whatever, because a small proportion of the users of that currency may be utilizing it for money laundering purposes.\u201d Moreover, he asserted:<\/p>\n You cannot just make the equivalent that money laundering and bitcoin or money laundering and cryptocurrencies are one and the same. That, I think is very negative and definitely not correct.<\/p>\n<\/blockquote>\n The economist suggested that \u201cCentral banks should look at cryptocurrencies as a response to what they are doing,\u201d pointing out that their actions are \u201cabsolutely incredible in terms of money supply growth and in terms of the impact on financial assets.\u201d In conclusion, he suggested:<\/p>\n Central banks should be extremely concerned about the bubble in sovereign bonds and not about what cryptocurrencies are doing.<\/p>\n<\/blockquote>\nEconomist Says Governments Would Be Happy to Implement Strict Crypto Regulations<\/h2>\n
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Lagarde\u2019s Remarks About Bitcoin Are \u2018Extremely Dangerous\u2019 and \u2018Outrageous\u2019<\/h2>\n
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