Bitcoin needs to be regulated on a global level, ECB president Christine Lagarde told Reuters in an interview on Wednesday.
Lagarde said bitcoin is not a currency, but is instead a "highly speculative asset which has conducted some funny business and some interesting and totally reprehensible money laundering activity," according to the interview.
Bitcoin isn't a currency as evidenced by its wild swings over the past few weeks, Lagarde argued. The cryptocurrency has surged more than 300% in 2020, but after topping out above $40,000 last week the digital asset dropped by more than 20%.
"I think that there are criminal investigations that have taken place that I'm sure will continue to take place that demonstrate it very clearly," Lagarde said.
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The criminal activity and legal loopholes surrounding bitcoin is why it needs to be regulated on a global level, Lagarde said.
"There has to be regulations and this hast to be applied and agreed upon at a global level because if there is an escape, that escape will be used," Lagarde said, adding that global cooperation is needed.
Lagarde sees rules on bitcoin potentially...