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ECB President Lagarde says no to Bitcoin as reserve asset for EU countries

Writer's picture: Brandon ZempBrandon Zemp
ECB President Lagarde says no to Bitcoin as reserve asset for EU countries

Although Bitcoin's adoption is increasing, ECB President Christine Lagarde indicated on Thursday that it is improbable for member states to do the same.


European Central Bank President Christine Lagarde has dismissed the idea that member countries will soon include Bitcoin in their reserves.


During a Thursday press conference in Frankfurt, Lagarde stated that Bitcoin's volatility and connections to illicit finance render it unsuitable as a reserve asset.


“There is a view around the table of the governing council … that reserves have to be liquid, that reserves have to be secure, that they have to be safe," Lagarde said. “I'm confident that Bitcoins will not enter the reserves of any of the central banks of the general council.”


Her remarks highlight ongoing skepticism about Bitcoin among European lawmakers, even as the asset has recently appreciated and seen increased adoption by governments and institutions in the Americas. Although the European Central Bank cannot directly prohibit its member states from investing in Bitcoin, it can exert influence through investigations, sanctions, and administrative penalties.


Over the past 12 months, Bitcoin's price has surged by 150%, driven by the approval of U.S. spot Bitcoin exchange-traded funds and changes in the regulatory environment.


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