European Central Bank President Christine Lagarde has ordered that Bitcoin will never find its way into an EU Central Bank’s vault.
In a recent statement, Lagarde pointed out that Bitcoin does not have the decisive characteristics for any reserve access compensation, security or stability.
She commented in response to a growing debate about Bitcoin’s potential role in national reserves after a proposal was made by a Czech central banks.
Bitcoin fails to meet reserve access standards: ECB
Lagarde’s Rejection on bitcoin When a reserve access continues in the light of the traditional skepticism of cryptocorate of the ECB. She pointed out that Bitcoin remains volatile and without a central controller, making it inappropriate to be used by central banks in their reserves.
Unlike gold and government bonds whose value is protected by such a central institute, Bitcoin stands out as uncertain and unreliable as an asset class during economic fluctuations, she said.
European Central Bank President Christine Lagarde says Bitcoin will not be included in any EU Central Bank Reserves. pic.twitter.com/oh01yig5e5
– Altcoin Daily (@altcoindailyio) January 30, 2025
The comments from the ECB president came in response to the Czech national bank governor Aleš Michl, who suggested to include Bitcoin in the Czech National Reserves.
Although the Czech Republic is not a country in the euro area, its central bank is still represented in the ECB’s general advice, which means that its political debates are part of the general European financial framework.
Lagarde, however, quickly pushed down the proposal and anchored further ECB’s gentle position on digital assets.
The message from the ECB president echoes the point of view that Bitcoin could not be maintained in his arches. Other European banks share opinions about the ECB in Poland; Romania also said that these crypto courses will probably be held by their official balances.
Posture vs. Crypto
Even beyond Europe, large institutions such as the US Federal Reserve have taken a fixed attitude towards holding Bitcoin. Fed chairman Jerome Powell had previously said that the US central bank is legally prevented from placing Bitcoin in its reserve, which means that the gap between the old financial system and the currency is even clearer.
Many legislators doubt Bitcoin because they are worried about unclear regulations, its tendency to have price spikes and its limited use for everyday transactions.
Some countries become more open to bitcoin, but most large economies still find it too risky to keep their government reserves.
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Bitcoin’s Place in the global financial system
Despite its rejection from central banks, Bitcoin is an important power in global financing. It has gained traction as a store with value among both institutional and retail investors, with some even refer to it as “digital gold.”
Image from Sky News, Chart from TradingView