{"id":5170,"date":"2022-06-24T06:30:07","date_gmt":"2022-06-24T06:30:07","guid":{"rendered":"http:\/\/cryptoheretostay.com\/?p=5170"},"modified":"2022-06-24T06:30:07","modified_gmt":"2022-06-24T06:30:07","slug":"ecb-chief-lagarde-crypto-and-defi-could-pose-real-risks-to-financial-stability","status":"publish","type":"post","link":"https:\/\/cryptoheretostay.com\/?p=5170","title":{"rendered":"ECB Chief Lagarde: Crypto and Defi Could Pose &#8216;Real Risks&#8217; to Financial Stability"},"content":{"rendered":"<p> <script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"crypto\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<\/p>\n<p><strong>The president of the European Central Bank (ECB), Christine Lagarde, says crypto assets and decentralized finance (defi) have the potential to pose \u201creal risks\u201d to financial stability. She has some regulatory suggestions to supplement Europe\u2019s Markets in Crypto Assets Regulation (MiCA) bill.<br \/><\/strong><\/p>\n<h2>Lagarde on Crypto Regulation<\/h2>\n<p>ECB President Christine Lagarde talked about cryptocurrency regulation at the European Parliament\u2019s Committee on Economic and Monetary Affairs hearing Monday. She said:<\/p>\n<p>We believe, as we are embarking on this work concerning crypto assets and the risk that they pose, that crypto assets and decentralized finance (defi) have the potential to pose real risks to financial stability.<\/p>\n<p>\u201cThis would be particularly the case if the rapid growth of crypto-asset markets and services continue \u2026 and the interconnectedness with both the traditional financial sector and the broader economy is intensified,\u201d the ECB chief added.<\/p>\n<p>However, she noted: \u201cFor the moment, the links between the private sector crypto assets and traditional finance remain still limited \u2014 for the moment.\u201d<\/p>\n<p>Lagarde proceeded to talk about the Markets in Crypto Assets Regulation (MiCA) bill. She emphasized that the European Systemic Risk Board (ESRB), which she chairs, \u201csupports the need for quick adoption and implementation\u201d of MiCA.<\/p>\n<p>The ECB chief noted that she is encouraged by the progress of MiCA. However, she added that to her understanding, it \u201cwill not be implemented until 2024,\u201d which she stressed \u201cis a long way away.\u201d<\/p>\n<p>Lagarde then suggested some additional provisions to the current MiCA bill. Referring to the MiCA bill with add-on provisions as MiCA2, she explained that MiCA2 \u201cShould address the risk of interconnectedness with respect to financial institutions\u2019 exposure to crypto assets.\u201d<\/p>\n<p>It should also \u201cfully cover decentralized finance (defi)\u201d and regulate crypto staking and lending activities, she said. The ECB boss noted that the current MiCA bill does not cover bitcoin but she hopes it will be covered in MiCA2.<\/p>\n<p><em><strong>What do you think about the comments by ECB President Christine Lagarde? Let us know in the comments section below.<\/strong><\/em><\/p>\n<p>Kevin Helms <\/p>\n<p class=\"article__body__author__info__about\">\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.<\/p>\n<p><i class=\"td-icon-font td-icon-mail-1\"\/><\/p>\n<p class=\"images_credits\"><em>Image Credits: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n<p><strong>Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<p>More Popular NewsIn Case You Missed It<\/p>\n<p><script type=\"text\/javascript\">\r\namzn_assoc_placement = \"adunit0\";\r\namzn_assoc_tracking_id = \"totafreearti-20\";\r\namzn_assoc_ad_mode = \"search\";\r\namzn_assoc_ad_type = \"smart\";\r\namzn_assoc_marketplace = \"amazon\";\r\namzn_assoc_region = \"US\";\r\namzn_assoc_default_search_phrase = \"bitcoin\";\r\namzn_assoc_default_category = \"All\";\r\namzn_assoc_search_bar = \"false\";\r\namzn_assoc_title = \"\";\r\namzn_assoc_rows =\"1\";\r\n<\/script>\r\n<script src=\"\/\/z-na.amazon-adsystem.com\/widgets\/onejs?MarketPlace=US\"><\/script><br \/>\n<br \/><a href=\"https:\/\/news.bitcoin.com\/ecb-chief-lagarde-crypto-and-defi-could-pose-real-risks-to-financial-stability\/\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The president of the European Central Bank (ECB), Christine Lagarde, says crypto assets and decentralized finance (defi) have the potential to pose \u201creal risks\u201d to financial stability. She has some regulatory suggestions to supplement Europe\u2019s Markets in Crypto Assets Regulation (MiCA) bill. Lagarde on Crypto Regulation ECB President Christine Lagarde talked about cryptocurrency regulation at [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5171,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_wp_rev_ctl_limit":""},"categories":[1],"tags":[],"class_list":["post-5170","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-crypto-updates"],"_links":{"self":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5170","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5170"}],"version-history":[{"count":1,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5170\/revisions"}],"predecessor-version":[{"id":5172,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/posts\/5170\/revisions\/5172"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=\/wp\/v2\/media\/5171"}],"wp:attachment":[{"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5170"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5170"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoheretostay.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5170"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}