European Central Bank President Christine Lagarde Says Bitcoin Will Not Be Included in Any EU Central Bank Reserves

European Central Bank President Christine Lagarde has decreed that Bitcoin will never find its way into the vaults of an EU central bank.

European Central Bank President Christine Lagarde has definitively ruled out the possibility of Bitcoin being included in the vaults of any EU central bank.

In response to a recent proposal by a Czech central banker to include Bitcoin in the national reserves, Lagarde highlighted that the cryptocurrency fails to meet the defining characteristics of any reserve asset, namely liquidity, security, or stability.

Bitcoin Fails To Meet Reserve Asset Standards: ECB

Lagarde's comments come amid a growing debate over Bitcoin's potential role in national reserves. Recently, a Czech central banker proposed including the cryptocurrency in the national reserves of the Czech Republic.

While the Czech Republic is not a eurozone country, its central bank is still represented on the General Council of the ECB, meaning that its policy debates are part of the general European financial framework.

However, Lagarde swiftly shot down the suggestion, further entrenching the cautious position of the ECB on digital assets.

The message from the ECB president echoes the viewpoint that Bitcoin could not be maintained in their vaults. Other banks of Europe do share the views of ECB - Poland; Romania also said that these cryptocurrencies will probably be kept off their official balances.

Stance Vs. Crypto

Even beyond Europe, major institutions such as the US Federal Reserve have taken a firm stance against holding Bitcoin. Fed Chair Jerome Powell had earlier said the US central bank is legally prevented from placing Bitcoin in its reserve, making the chasm between the old financial system and the currency even clearer.

Many lawmakers are hesitant about Bitcoin because they are worried about unclear regulations, its tendency to have price spikes, and its limited use for everyday transactions.

While some countries are becoming more open to Bitcoin, most large economies still think it’s too risky to keep in their government reserves.