ECB adviser rejects Bitcoin as reserve asset, cites volatility and speculation
The European Central Bank (ECB) has reaffirmed its skeptical stance on Bitcoin, with senior adviser Jürgen Schaaf dismissing the notion of adding BTC to the ECB’s reserves.
Schaaf argues that Bitcoin lacks real economic necessity and warns that its inclusion would fuel speculation rather than provide financial stability.
As Bitcoin fell below $88,000 amid widespread market liquidations, discussions surrounding its potential role as a reserve asset have resurfaced. Schaaf, in a recent statement to Cointelegraph, emphasized that while strategic reserves such as oil and gas serve a tangible economic purpose, Bitcoin does not meet these criteria. "There is no real economic need for Bitcoin," he stated, reinforcing the ECB’s longstanding position against cryptocurrency integration into state reserves.
Risks of speculation and volatility
Schaaf highlighted the risks associated with Bitcoin’s extreme price fluctuations, illicit use cases, and susceptibility to market manipulation. He pointed out that adding BTC to ECB reserves would not help stabilize the euro, but instead contribute to speculative trading and potential wealth redistribution.
«Different types of strategic reserves exist, such as stockpiling raw materials, which can be released during crises to prevent import price surges,»he explained. «However, in the US and Europe, reducing public debt takes precedence over risky speculative investments.»
Schaaf also dismissed the idea of central banks holding a diversified portfolio of cryptocurrencies. He argued that adding multiple digital assets would only amplify the volatility and speculative nature of such investments.
«Whether Bitcoin alone or a mix of digital assets, the risks remain high, and the economic justification remains weak,» Schaaf added.
Market turmoil and ECB’s position
The timing of Schaaf’s remarks coincides with heightened volatility in the crypto market. Over $1.5 billion in crypto liquidations have been recorded within 24 hours. The cryptocurrency, which reached an all-time high of over $106,000 in December 2024, has declined by 7% in the past day, slipping below $88,000 for the first time since mid-November.
Schaaf’s comments highlight the ECB’s enduring skepticism toward Bitcoin as a viable reserve asset. While Bitcoin proponents continue to argue for its potential in financial ecosystems, the ECB maintains that its volatility, lack of intrinsic economic value, and speculative nature make it unsuitable for state reserves.
The ECB’s position aligns with previous remarks made by its president, Christine Lagarde, who reiterated in January that Bitcoin would not be included in the reserves of European central banks.
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