European Central Bank (ECB) President Christine Lagarde stated that Bitcoin (BTC) is unlikely to be adopted as a reserve asset by EU banks

This follows the Czech National Bank's (CNB) proposal to allocate 5% of public funds to Bitcoin as part of its reserve diversification strategy.

The European Central Bank (ECB) will not be adopting Bitcoin (BTC) as a reserve asset, ECB President Christine Lagarde stated at a conference on Thursday. The statement comes as the Czech National Bank (CNB) is considering adding Bitcoin to its reserves.

The CNB board approved a proposal on Thursday to explore investing reserves in additional asset classes, with CNB Governor Aleš Michl suggesting that Bitcoin could be considered for diversification, Coindesk reported.

"My goal is to diversify the portfolio, so if bitcoin is good [for that], then let’s have it," said Michl.

CNB's consideration of Bitcoin is part of its reserve diversification strategy, which aims to allocate 5% of public funds to Bitcoin as a reserve asset. The potential investment, based on CNB's total reserves, would exceed $7.3 billion.

CNB was set to review this proposal on January 30.

ECB Opposes Bitcoin, EU Pursues Digital Euro

Lagarde's statement at the conference further highlighted the ECB's stance on Bitcoin. She stated that Bitcoin would not meet the ECB's criteria for reserves, which prioritize liquidity, security, and stability. However, other EU countries, including Poland, Slovenia, Switzerland, Germany, and the Czech Republic, have explored Bitcoin reserve options.

Meanwhile, the United States has banned central bank digital currencies (CBDCs) through an executive order by former President Donald Trump, while the EU continues its Digital Euro project to compete with dollar-pegged stablecoins.