By News Zier Editorial Team | Reviewed and approved by Editor-in-Chief to ensure accuracy and integrity.
Key Takeaways:
- Christine Lagarde, President of the European Central Bank (ECB), reaffirmed that Bitcoin and other cryptocurrencies will not be included in central bank reserves.
- Lagarde expressed confidence that no EU central bank would adopt Bitcoin, emphasizing its volatility and lack of intrinsic value.
- Her comments come amid growing institutional adoption of Bitcoin following the U.S. SEC’s approval of spot Bitcoin ETFs.
- The ECB remains sceptical of crypto assets, citing financial stability risks and the potential for illicit activities.
Lagarde’s Firm Stance on Bitcoin
Speaking at a press conference, ECB President Christine Lagarde made it clear that Bitcoin and other cryptocurrencies would not be considered for central bank reserves. “As far as I know, no European central bank is considering it,” she stated, reaffirming the ECB’s cautious approach to digital assets.
Lagarde has long been a vocal critic of cryptocurrencies, previously warning about their speculative nature and potential threats to financial stability. Her latest remarks reinforce the ECB’s stance as some global financial institutions explore deeper integration of digital assets.
Why the ECB Rejects Bitcoin
Despite increasing institutional interest in Bitcoin—especially following the approval of U.S. spot Bitcoin ETFs—Lagarde remains unconvinced of its role in monetary reserves. The ECB’s key concerns include:
- Volatility: Bitcoin’s price swings make it an unreliable reserve asset.
- Lack of Intrinsic Value: Unlike gold or fiat-backed assets, Bitcoin is not backed by a tangible reserve.
- Regulatory & Security Risks: Central banks are wary of crypto’s potential use in illicit activities.
- Financial Stability Concerns: The ECB fears Bitcoin’s integration could pose risks to traditional banking.
The Global Context: Bitcoin’s Rising Adoption
While the ECB resists Bitcoin, other institutions have taken steps toward crypto adoption:
- The U.S. Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETFs, fueling optimism in the market.
- Some countries, such as El Salvador, have already adopted Bitcoin as legal tender.
- Institutional investors, including BlackRock and Fidelity, have entered the Bitcoin space, increasing its credibility.
Despite these trends, Lagarde and the ECB remain firmly against integrating Bitcoin into their financial system.
Disclaimer: This article was informed by reports from Bloomberg and adapted by News Zier Editorial Team for clarity and additional context.
For more details: visit the original report on Bloomberg.