In a decisive statement, European Central Bank President Christine Lagarde has firmly dismissed the notion of incorporating Bitcoin into the reserves of EU central banks. According to the results published in the material, her remarks come amid ongoing discussions about the role of cryptocurrencies in national financial systems.
Concerns Over Bitcoin's Volatility
Lagarde's rejection stems from significant concerns regarding Bitcoin's volatility, its potential use in money laundering, and the insufficient liquidity required for institutional investments. She highlighted that reserve assets must prioritize liquidity, security, and safety, while also being devoid of any links to criminal activities.
Proposal from the Czech National Bank
This response was triggered by a proposal from Aleš Michl, the Governor of the Czech National Bank, who advocated for Bitcoin's inclusion in the Czech Republic's national reserves. Although the Czech Republic does not use the euro, it is an active participant in the ECB's General Council, thereby influencing broader European financial discussions.
Cautious Approach from Other European Central Banks
Moreover, other European central banks, including those in Poland and Romania, have echoed similar concerns, indicating a cautious approach towards the adoption of cryptocurrencies in their reserve strategies.
In a contrasting move within the cryptocurrency sector, a new stablecoin called eUSD was introduced, backed by a US-chartered bank, enhancing regulatory compliance. For more details, see read more.
