The Argentine Central Bank criticizes cryptocurrency, and the ECB believes that stablecoins should be backed by fiat
The head of the Argentine Central Bank speaks skeptically about digital assets
The head of the Central Bank of Argentina, Miguel Angel Pesce, said that he does not trust digital currencies due to their high volatility. Pesce noted that he was confused by the term “currency”, which is used in the word “cryptocurrency”.
He believes that this is inappropriate, since the units of account based on the blockchain are the exact opposite of real currency. Pesce believes that digital currencies belong “to something hidden and incomprehensible.” They are not used as a legal payment instrument, they are susceptible to various operational failures and hacker attacks, and do not have any guarantees for users.
“Because of misinformation, people are investing in cryptocurrencies, but they have no control over their investments. We have to explain this to the population in order to avoid such situations,” said Pesce.
Christine Lagarde believes stablecoins should be backed by fiat
The head of the European Central Bank Christine Lagarde is confident that stablecoins must be backed by fiat, otherwise they pose a risk to users. According to Lagarde, today it is important to correctly classify digital currencies and “call a spade a spade.”
“Stablecoins pretend to be currencies, but in reality they are not, they are only pegged to them. Recent stories with stablecoin issuers have demonstrated that they may not be fully backed by fiat money, as is commonly claimed, ”said the head of the European Central Bank.
In addition, she announced that a two-year experiment aimed at identifying the need for a digital euro will start soon. The ECB wants it to be used not only in the EU, but also on other continents.
“The ECB must be ready to respond to customer needs. If they prefer to use digital currency over banknotes, then it should be made available to everyone,” Lagarde said.
JP Morgan considers modern altcoins to be overvalued
Experts at JP Morgan believe that today’s valuation of altcoins, especially those associated with NFTs, seems overwhelming.
“The share of altcoins seems to be overestimated relative to the dynamics in the past. We perceive this more as a retail investor mania than a reflection of a structural uptrend,” analysts said.
Thus, they commented on the information that by this autumn this indicator in the total trading volume on crypto platforms had grown from 22% to 33%. Analysts saw a link between the influx of investment from retail investors into the US stock market, influenced by Reddit users, and the “madness” of investing in NFT and DeFi. The result is the explosive growth in the rate of SOL, BNB and ADA lately.