Christine Lagarde, President of the European Central Bank, says cryptos pose 'real risk' to investors and are totally different to digital currencies. AFP
Christine Lagarde, President of the European Central Bank, says cryptos pose 'real risk' to investors and are totally different to digital currencies. AFP
Christine Lagarde, President of the European Central Bank, says cryptos pose 'real risk' to investors and are totally different to digital currencies. AFP
Christine Lagarde, President of the European Central Bank, says cryptos pose 'real risk' to investors and are totally different to digital currencies. AFP

ECB’s Christine Lagarde sounds alarm over use of cryptos for money laundering


Alice Haine
  • English
  • Arabic

European Central Bank chief Christine Lagarde sounded the alarm over the use of cryptocurrencies for money laundering on Friday as she backed the adoption of digital currencies by central banks.

The ECB president said people were taking a "real risk" by buying cryptos with her comments coming a day after Bank of England governor Andrew Bailey warned investors to buy cryptos only "if you're prepared to lose all your money".

“Cryptocurrencies – these two things don’t go well together and I totally agree with Andrew Bailey’s conclusion in that respect,” Ms Lagarde told a virtual webinar, hosted by the European University Institute, in which she quoted the BoE governor.

“There are crypto assets which people are free to invest in and take full risk into and there are particular cryptos that are, in my view, prone to money laundering activities – it’s a real risk that people are taking.”

Central banks and governments around the world are becoming increasingly concerned over the use of cryptocurrencies for money laundering, financing terrorism and other illegal activities.

Bitcoin and Ethereum, the two biggest cryptocurrencies, surged to record highs this year as institutional investors piled into the digital asset space encouraging retail investors to follow suit.

Meanwhile, Meme-based virtual currency Dogecoin soared to a new high this week, extending its 2021 rally to become the fourth-biggest digital coin.

Ms Lagarde said crypto assets had nothing to do with stable coins or the digital currencies being considered by central banks, such as the digital euro.

While central bank digital currencies, or CBDCs, are not yet in widespread use, more than 60 central banks are now exploring or developing CBDCs, PricewaterhouseCoopers said.

Central banks, including the ECB, aim to use the flexibility of digital cash to improve payment systems, ease some of the complexities of negative interest rates and ensure they don't cede too much control to digital currencies.

However, the scope and scale of central bank digital currency research varies from country to country. While The People's Bank of China is in advanced stages of testing a digital yuan that would be used by individuals and businesses, the Bahamas has a fully working, digital 'Sand Dollar' and Sweden could have a digital currency within five years.

Last month, the BoE pledged to team up with the UK Treasury to examine the potential creation of its own digital currency.

Meanwhile, the ECB recently completed a public consultation on a digital euro, with privacy the number one factor demanded by Europeans, followed by security.

Ms Lagarde said she was first attracted to digital currency when she headed the International Monetary Fund, because they have the potential to be more inclusive and cheaper for emerging market countries, as well as being faster and more efficient.

“When you start looking at many of those remittances that flow from country to country, it begs for that kind of instrument,” she said.

“It’s a big project, which is filled with lots of technical issues, issues of principles, issues of sovereignty, issues of monetary policy transmission and the issue of the role to be played by the traditional actors that we are accustomed to.

“I know there is a lot of concern and worry from the commercial banks but we owe it to the Europeans to actually explore it. Europeans are telling us … they are very interested. They want it; the pandemic has accelerated the process and about 50 per cent of Europeans say, 'I'd like to pay digitally, I'd like to use a device like that'.”

More on cryptocurrencies 

BoE's Andrew Bailey: Current cryptocurrencies aren’t built to last

Anthony Scaramucci’s SkyBridge Capital to focus on new ‘digital gold’ Bitcoin

Can Bitcoin’s value really soar to $400,000?

UAE jiu-jitsu squad

Men: Hamad Nawad and Khalid Al Balushi (56kg), Omar Al Fadhli and Saeed Al Mazroui (62kg), Taleb Al Kirbi and Humaid Al Kaabi (69kg), Mohammed Al Qubaisi and Saud Al Hammadi (70kg), Khalfan Belhol and Mohammad Haitham Radhi (85kg), Faisal Al Ketbi and Zayed Al Kaabi (94kg)

Women: Wadima Al Yafei and Mahra Al Hanaei (49kg), Bashayer Al Matrooshi and Hessa Al Shamsi (62kg)

SPECS
%3Cp%3E%3Cstrong%3EEngine%3C%2Fstrong%3E%3A%202-litre%20direct%20injection%20turbo%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%207-speed%20automatic%20%0D%3Cbr%3E%3Cstrong%3EPower%3C%2Fstrong%3E%3A%20261hp%20%0D%3Cbr%3E%3Cstrong%3ETorque%3C%2Fstrong%3E%3A%20400Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3C%2Fstrong%3E%3A%20From%20Dh134%2C999%26nbsp%3B%3C%2Fp%3E%0A
FIGHT CARD

Sara El Bakkali v Anisha Kadka (Lightweight, female)
Mohammed Adil Al Debi v Moaz Abdelgawad (Bantamweight)
Amir Boureslan v Mahmoud Zanouny (Welterweight)
Abrorbek Madaminbekov v Mohammed Al Katheeri (Featherweight)
Ibrahem Bilal v Emad Arafa (Super featherweight)
Ahmed Abdolaziz v Imad Essassi (Middleweight)
Milena Martinou v Ilham Bourakkadi (Bantamweight, female)
Noureddine El Agouti v Mohamed Mardi (Welterweight)
Nabil Ouach v Ymad Atrous (Middleweight)
Nouredin Samir v Zainalabid Dadachev (Lightweight)
Marlon Ribeiro v Mehdi Oubahammou (Welterweight)
Brad Stanton v Mohamed El Boukhari (Super welterweight

Company%20profile
%3Cp%3E%3Cbr%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Khodar%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Cairo%20and%20Alexandria%2C%20in%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Ayman%20Hamza%2C%20Yasser%20Eidrous%20and%20Amr%20El%20Sheikh%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20agriculture%20technology%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%24500%2C000%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Saudi%20Arabia%E2%80%99s%20Revival%20Lab%20and%20others%3Cbr%3E%3Cstrong%3EEmployees%3A%3C%2Fstrong%3E%2035%3C%2Fp%3E%0A
BRIEF SCORES

England 353 and 313-8 dec
(B Stokes 112, A Cook 88; M Morkel 3-70, K Rabada 3-85)  
(J Bairstow 63, T Westley 59, J Root 50; K Maharaj 3-50)
South Africa 175 and 252
(T Bavuma 52; T Roland-Jones 5-57, J Anderson 3-25)
(D Elgar 136; M Ali 4-45, T Roland-Jones 3-72)

Result: England won by 239 runs
England lead four-match series 2-1

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The specs: 2018 Nissan 370Z Nismo

The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
​​​​​​​Fuel consumption, combined: 10.5L / 100km

Three ways to boost your credit score

Marwan Lutfi says the core fundamentals that drive better payment behaviour and can improve your credit score are:

1. Make sure you make your payments on time;

2. Limit the number of products you borrow on: the more loans and credit cards you have, the more it will affect your credit score;

3. Don't max out all your debts: how much you maximise those credit facilities will have an impact. If you have five credit cards and utilise 90 per cent of that credit, it will negatively affect your score.

IF YOU GO
 
The flights: FlyDubai offers direct flights to Catania Airport from Dubai International Terminal 2 daily with return fares starting from Dh1,895.
 
The details: Access to the 2,900-metre elevation point at Mount Etna by cable car and 4x4 transport vehicle cost around €57.50 (Dh248) per adult. Entry into Teatro Greco costs €10 (Dh43). For more go to www.visitsicily.info

 Where to stay: Hilton Giardini Naxos offers beachfront access and accessible to Taormina and Mount Etna. Rooms start from around €130 (Dh561) per night, including taxes.

if you go

The flights

Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.

The hotel

Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850

 Events and tours

There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com

For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art. 

More information

For ideas on planning a trip to Scotland, visit www.visitscotland.com

House-hunting

Top 10 locations for inquiries from US house hunters, according to Rightmove

  1. Edinburgh, Scotland 
  2. Westminster, London 
  3. Camden, London 
  4. Glasgow, Scotland 
  5. Islington, London 
  6. Kensington and Chelsea, London 
  7. Highlands, Scotland 
  8. Argyll and Bute, Scotland 
  9. Fife, Scotland 
  10. Tower Hamlets, London 

 

UAE currency: the story behind the money in your pockets
Jebel Ali results

2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m

Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)

2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m

Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard

3pm: Handicap (TB) Dh 64,000 (D) 1,600m

Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe

3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m

Winner: Gabr, Sam Hitchcott, Doug Watson

4pm: Handicap (TB) Dh 96,000 (D) 1,800m

Winner: Just A Penny, Sam Hitchcock, Doug Watson

4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m

Winner: Torno Subito, Sam Hitchcock, Doug Watson

5pm: Handicap (TB) Dh 76,000 (D) 1,950m

Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer

Bib%20Gourmand%20restaurants
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