ECB President says Bitcoin not to be included in EU reserves
ECB rejects Bitcoin as a reserve asset, citing liquidity and illicit activity risks.
European Central Bank (ECB) President Christine Lagarde has reaffirmed that Bitcoin (BTC) will not be included in the official reserves of the European Union (EU), citing concerns over its liquidity, security, and ties to illicit activities.
Speaking at a press conference, Lagarde emphasized that central bank reserves must meet strict stability and safety criteria, which Bitcoin fails to fulfill, reports CoinGape.
“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. And as a result, I’m confident that Bitcoin will not enter the reserves of any of the central banks of the General Council.”
ECB Stands Firm Amid Growing Institutional Bitcoin Adoption
Lagarde’s dismissal of Bitcoin as a reserve asset contrasts with a growing trend among global financial institutions and nation-states considering BTC holdings.
Her statement follows Czech National Bank (CNB) Governor Aleš Michl’s suggestion that his institution may explore Bitcoin as part of its reserves, highlighting diverging views on the role of digital assets in monetary policy.
While the United States, El Salvador, and several European financial leaders explore Bitcoin reserves, the ECB remains steadfast in its stance against integrating cryptocurrency into its balance sheet.
Lagarde’s comments reinforce the ECB’s cautious approach toward digital assets, aligning with its broader efforts to develop a regulated digital euro while keeping decentralized cryptocurrencies at arm’s length.
Recently we wrote, that a Utah House committee has passed HB 230, the Blockchain and Digital Innovation Amendments, which would allow the state to allocate up to 5% of certain public funds into digital assets.
