BTC reserves could cause tension in Eurozone #CriptoNews

• The European Central Bank president stated that it will not consider including Bitcoin as part of its reserves.
• The Czech National Bank plans to assess the possibility of including cryptocurrencies in its investment diversification.
• Norges Bank fund allegedly holds a 0.72% stake in MicroStrategy, valued at $500 million.

Bitcoin (BTC) could cause tension in the Eurozone following the European Central Bank (ECB) President Christine Lagarde’s comment that central banks in the region will not include Bitcoin as part of their reserves. However, neighbouring nations like the Czech Republic and Norway’s exploration of cryptocurrency and Bitcoin solutions could ignite a similar desire from countries in the Eurozone.

Bitcoin set for adoption in Norway and Czech Republic, ECB refuses BTC reserve

The ECB President Christine Lagarde dismissed the possibility of Bitcoin being included in the Eurozone’s central bank reserves at a press conference following its latest interest rate cut on Thursday.

Lagarde affirmed the bank’s commitment to maintaining stable and secure reserves, highlighting major concerns about Bitcoin’s security and volatility.

She also emphasized that central bank reserves must meet strict criteria, including being liquid and protecting against financial crime.

“There is a shared view among the Governing Council — and likely the General Council as well — that reserves must be liquid, secure, and free from concerns related to money laundering or other illicit activities,” Lagarde stated.

Considering these factors, Lagarde made it clear that Bitcoin does not align with the ECB’s reserve requirements.

“I am confident that […] Bitcoin will not be included in the reserves of any central banks within the General Council,” she said.

Although the ECB’s stance reflects a disapproval of Bitcoin in central bank reserves of Eurozone countries, neighbouring nations like the Czech Republic and Norway could be on the verge of making moves that contradict Lagarde’s comments.

The Czech National Bank (CNB) has approved a proposal to assess new investment options, including Bitcoin, as part of its reserve diversification strategy.

“The central bank has been increasingly diversifying its investments over the last two years,” the CNB stated.

If approved, the CNB would become the first European central bank to hold Bitcoin, with any new investments disclosed in its quarterly and annual reports.

Meanwhile, Norges Bank Investment Management, the world’s largest sovereign wealth fund, has allegedly taken notable positions in Bitcoin-related companies.

The bank owns a 0.55% stake in Metaplanet and a 0.72% stake in MicroStrategy — valued at a staggering $500 million.

An investment in MicroStrategy shares is often seen as a proxy for owning Bitcoin due to the company’s heavy BTC reserve.

The move by these neighbouring European entities starkly contrasts ECB President Lagarde’s disapproval of Bitcoin as a viable reserve asset for central banks. This reflects lingering governments’ skepticism toward BTC, hindering its mass adoption.

However, should a nation like the United States (US) successfully create a Bitcoin reserve, other governments and financial bodies could be compelled to follow suit.