Financial Insights That Matter
The European Central Bank (ECB) has no intention of adding Bitcoin BTC/USD to its reserves, according to ECB President Christine Lagarde.
Speaking after the central bank’s latest interest rate adjustment, Lagarde dismissed the idea, stating that Bitcoin does not align with the ECB’s standards for safety, liquidity and regulatory compliance, The Block reported.
The comments came following the ECB’s decision to lower its key deposit rate by 25 basis points, bringing it down to 2.75%.
This marks the fifth rate reduction since June 2024 as the ECB continues its monetary easing strategy.
Bitcoin Fails To Meet ECB’s Reserve Criteria
Lagarde underscored the ECB’s strict requirements for reserve assets, emphasizing that they must be secure, highly liquid and free from concerns related to money laundering or illicit activities.
“There is broad agreement within the Governing Council that reserves must be safe, liquid, and not subject to potential financial crime concerns,” she said. “For these reasons, Bitcoin will not be considered for central bank reserves.”
While some countries, such as El Salvador, have incorporated Bitcoin into their national reserves, the ECB remains firm in its stance that digital assets lack the necessary stability for inclusion in its monetary framework.
Also Read: Bitcoin, Ethereum, Dogecoin, Litecoin Are The Most Popular Cryptos For Online Casinos
Longstanding Skepticism Toward Bitcoin
Lagarde’s opposition to Bitcoin is not new.
She has previously warned about its speculative nature and has repeatedly advocated for stricter global regulations on cryptocurrencies.
In a 2021 speech, she highlighted Bitcoin’s alleged involvement in financial crimes, asserting that it had been used in “suspicious and unethical financial activities.”
Despite increasing global discussions on Bitcoin’s role in national treasuries, the ECB remains steadfast in its position.
While some financial institutions have begun exploring digital assets, Lagarde and other ECB officials argue that Bitcoin’s volatility and lack of oversight make it unsuitable as a reserve asset.
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