ECB President Lagarde's Son Defies Her Anti-Crypto Stance: 'He Ignored Me ? Lost Almost All The Money'

BY Benzinga | ECONOMIC | 11/27/23 03:12 PM EST

One of the most important names in the world of finance is European Central Bank President Christine Lagarde.

The words of Lagarde are often used to get a read on the overall financial health of nations in Europe and can serve as guidance for worldwide financial recommendations.

Although Lagarde is widely regarded as a source of financial wisdom, her own son chose to disregard her advice in a particular financial matter.

What Happened: Lagarde has spoken on issues like inflation and interest rates in 2023 and for the past several years has been a critic of the cryptocurrency sector.

While many people respect Lagarde’s thoughts, her own son in his thirties overlooked her views on cryptocurrency, according to a Reuters report shared by Decrypt.

"He ignored me royally, which is a privilege, and he lost almost all the money that he had invested," Lagarde said during a recent town hall meeting.

The comments come as Lagarde has fought to keep the European Central Bank away from the high volatility of the cryptocurrency sector.

"It wasn't a lot, but he lost it all, he lost about 60% of it. So when I had another talk with him about it, he reluctantly accepted that I was right."

Lagarde discussed her son buying crypto last year, according to Decrypt. Lagarde has two sons, both in their mid-thirties, but has not clarified which son bought the crypto.

Related Link: So You Told Your Family To Invest In Bitcoin, Dogecoin, Ethereum At Thanksgiving Last Year? Here’s How Much They Now Have (And Why You Might Be Invited Back To The Adult Table)

Why It's Important: The ECB President previously said that crypto assets like Bitcoin (CRYPTO: BTC) "are worth nothing" and "based on nothing." Lagarde said previously it was "out of the question" for central banks to hold Bitcoin.

Lagarde has been critical of cryptocurrency, but she remains a proponent of central bank digital currencies (CBDCs), with the European Central Bank actively looking into the potential of a digital euro. CBDCs have been adopted in several countries, but remain controversial as they could allow governments to monitor financial transactions.

In 2022, Lagarde believed that Russia was using cryptocurrencies like Bitcoin to get around sanctions due to its actions in Ukraine.

Lagarde is not the only anti-crypto figure to see a child invest in the sector. Noted Bitcoin critic Peter Schiff has watched his son Spencer Schiff become a Bitcoin bull for a short period.

"The younger generation always thinks they know something their father, grandfather didn't know," the older Schiff said.

Schiff added that many people investing in Bitcoin would learn their lesson the hard way.

Read Next: ECB Chief Lagarde Confident US Won’t Default On Debt: ‘Higher Interest Of Nation Has To Prevail’

Photo: Shutterstock

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article