ECB Chief Lagarde Rejects Bitcoin for Eurozone Reserves Amid Regulatory Concerns
The stance contrasts with the Czech National Bank’s consideration to invest up to 5% of its €140 billion holdings in Bitcoin.
While Lagarde maintains her position on secure reserves, former German Finance Minister Christian Linder has previously expressed openness to Bitcoin integration in Germany’s reserves.
The European Union won’t be joining the Strategic Bitcoin Reserve movement anytime soon, at least not according to ECB President Christine Lagarde.
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Speaking in Frankfurt, Germany, at a European Central Bank (ECB) press conference following the Governing Council meeting, Lagarde responded to a question from Bloomberg about whether the central bank would consider adding Bitcoin to its reserves.
Lagarde: No Place for Bitcoin in EU Central Bank Reserves
The ECB president said she doesn’t see any place for Bitcoin as a reserve asset in the Eurozone, referring to concerns over security, liquidity and regulatory issues.
There is a view around the table of the Governing Council and most likely the General Council as well that reserves have to be liquid, that reserves have to be secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities.
She added that “as a result” she’s certain that BTC will “not enter the reserves of any of the central banks of the General Council”.
The comments come as the ECB just lowered interest rates for the fifth time since the start of 2024, by 25 basis points this time.
Not surprisingly, Lagarde’s comments were met with scepticism and ridicule by the crypto community, with some commentators comparing the president’s views to that of a dinosaur.
Source: X
ECB President’s Comments Not Shared by All EU Members
Not everyone agrees with Lagarde though. Back in December, former German Finance Minister Christian Lindner made comments about the EU’s largest economy adding crypto to its reserves.
Crypto assets now account for a significant part of the increase in global prosperity. Germany and Europe must not allow themselves to be left behind again.
Just days ago, Czech National Bank Governor Aleš Michl proposed that the country could add up to 5% of its €140 billion (AU$234 billion) asset holdings into BTC.
The CNB’s seven-member board approved the plans on Thursday and will now consider “the options for investing in additional asset classes”. The Czech Republic is a member of the European Union but not the Euro Zone.
Related: Fed Chair Powell Says Banks Open to Crypto With Proper Risk Controls
Lagarde said she had a “good conversation” with Michl and that she would “leave it to him to make whatever announcement he wants to make”.
She stressed that she is “confident that he’s convinced — as we all are — of the necessity to have liquid, secure and safe reserves”.
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Filed under: Bitcoin - @ January 31, 2025 4:04 am