We explore various approaches towards bitcoin as a reserve asset among European and American regulators, alongside current developments in digital currencies.
Bitcoin's Role in European Reserves
European Central Bank President Christine Lagarde has stated that Bitcoin will not be included in the reserves of any central bank under the ECB's jurisdiction. Highlighting Bitcoin's volatility and its association with illicit finance, she deemed it unsuitable as a reserve asset. Despite global interest and Bitcoin's recent price increase, the ECB remains cautious.
Czech Republic's Exploration of Bitcoin Reserves
In contrast to the ECB, the Czech National Bank is considering the inclusion of Bitcoin in its reserves. Governor Aleš Michl plans to propose an investment of up to $7 billion in Bitcoin, viewing it as an opportunity for diversification. This interest is supported by some politicians across Europe, such as in Italy.
US Developments in Digital Asset Reserves
In the US, some state governments, including Pennsylvania, Texas, and Illinois, are exploring the use of Bitcoin in their financial strategies. President Donald Trump has signed an executive order to study digital asset markets. Meanwhile, the European Central Bank is advancing its digital euro project to strengthen its position in the digital economy.
As interest in digital assets grows, Bitcoin remains a controversial reserve asset, eliciting varied responses from global regulators.
