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Why a new head at the European Central Bank matters for Bitcoin

Why a new head at the European Central Bank matters for Bitcoin

The appointment of former IMF chief Christine Lagarde to the European Central Bank signals a potential shift in the bank’s approach to cryptocurrencies.

 

The European Parliament today approved Christine Lagarde as President of the European Central Bank (ECB). And her appointment could signal an incoming wave of crypto regulations from the ECB, which has been relatively unconcerned about the risk the digital assets such as Bitcoin pose to the economic system.

The non-binding recommendation is the prelude to a European Council vote scheduled for mid-October. Lagarde, who served as head of the International Monetary Fund (IMF) until her resignation became effective September 12, was first nominated to the ECB by the Council in July.

The ECB is charged with handling monetary policy for the 19 countries within Europe that have adopted the euro. (The European Parliament is the legislative body for the entire E.U., which includes an additional nine members that do not use the euro.)