Christine Lagarde, Demanded Global Regulation of Bitcoin

Christine Lagarde, the president of the European Central Bank, has recently demanded global regulation of Bitcoin. She also noted that, in some cases..

Christine Lagarde, Demanded Global Regulation of Bitcoin
Central Banks Avoid Digital Currencies

Christine Lagarde, the president of the European Central Bank, has recently demanded global regulation of Bitcoin.

She also noted that, in some cases, Bitcoin is being used for criminal activities and money laundering, and these kinds of misuses have to be stopped.

This is not the first Central Bank senior official's criticism about the current digital currencies especially Bitcoin, which is the most famous of them.

Some of the Central Banks have been negotiating on the issuance of their own digital currencies, especially after Facebook announced plans for its own cryptocurrency last year.

facebook currency

Even seven Central Banks such as the Federal Reserve, the European Central Bank, the Bank of England, and also the Bank for International Settlement (BIS) set out common rudimentary frameworks for digital currencies during a conference in 2020, and announced some main essentials of Central Bank digital currencies by a report.

Lagarde has stated once again in her current statement that global Central Banks consider common digital currencies like Bitcoin as a compelling property that in fact turned into a funny business and a way of money laundering.

But why do global Central Banks has largely disagreed upon wide-spreading the use of decentralized digital currencies?

Digital currencies could have profound impacts on the role of Central Banks. For the time being, Central Banks have the authorization of publishing money and currency, besides they use monetary policy to apply economic penetration, paying bank credits, adjusting inflation, economic growth, and unemployment.

Central Banks set the ways of transferring digital currencies and also have the process of transactions under their supervision.

Thereby, they can make the governments informed about the rate of people's income, businesses and also help the government to impose taxes.

The central banks' observance can make them detect criminal activities like money laundering. All of these controls that they have on the said areas will disappear once the nongovernmental organizations publish their own currencies.

On the other side, defenders of digital currencies believe that criminal activities such as drug and people trafficking, and terrorism have found loopholes in the observation of bank systems, and we still see tax evasions all around the world.

The defenders think that it is not much rational to stop digital currencies' progression just because they make illegal money transfers and transactions more feasible, and it is just an effort to cover up legal gaps and corruption of bank systems.

As reported by the European Central Bank, Bitcoin is just one of the more than 1600 digital currencies in circulation all around the world.

Some of the financial market experts remind a lot of publishing decentralized digital currencies' failures and know it difficult to gain public trust in digital currencies as an efficient way of trading.

They believe Bitcoin is more famous now as a persuasive property like gold since the recent price rising that made its value four times more over the last year, and therefore the possibility of making micro transactions with it as a common currency becomes more difficult day by day.