The collapse of FTX will have taught us one thing: it is more than urgent to put in place a stricter and broader regulatory framework for crypto. This is precisely what Christine Lagarde, current President of the European Central Bank (ECB), demands.
More crypto regulation, says Lagarde
During the Committee on Economic and Monetary Affairs of the European Parliament held in Brussels on November 28, Christine Lagarde spoke about recent crypto events. In response to the monumental collapse of FTX, the ECB president is indeed demanding broader regulation of the cryptocurrency market. “The stability and reliability of crypto has been on full display recently,” she said before adding that there should definitely be a MiCA II.
Lagarde is not on his first call. Since June, she has been lobbying relevant authorities and crypto regulators to put in place MiCA II regulations. Certainly, the final approval of the MiCA is in progress. The President of the ECB nevertheless maintains that this is not enough: “At least Europe is leading the pack. (…) There will have to be a MiCA II, which embraces more broadly what it aims to regulate and supervise, and this is really necessary. »
What about the digital currency project?
During her appearance before the European Parliament, Christine Lagarde raised another interesting point: the progress of the “digital euro” project. According to his explanations, the ECB is currently launching an investigation phase which will last two years. The purpose of this approach is to evaluate the use of online payments.
Despite the doubts hanging over the crypto market, the ECB intends to provide EU citizens with a reliable digital payment system. Moreover, it is already working on a prototype (in collaboration with many partners).
YES, regulation of the crypto market is well under way. But that’s not enough. YES, the use of crypto is unavoidable in the near future. But it is entirely possible to minimize the risks. These are the main lines of Christine Lagarde’s speech, in response to the concerns of certain people.
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