The European Central Bank (ECB) President Christine Lagarde ruled out the possibility of European Union (EU) central banks adding Bitcoin to their reserves.
Speaking in Frankfurt, she stated that Bitcoin does not meet the necessary requirements for liquidity, security, or reliability. Her comments followed discussions within the ECB’s Governing Council and an exchange of views with the Czech National Bank (CNB).
ECB Highlights Strict Criteria for Reserve Assets
Lagarde emphasized that central bank reserves must remain liquid and free from risks associated with illicit financial activities. She suggested that Bitcoin lacks these qualities, making it unsuitable for inclusion in central bank reserves.
The ECB’s policy remains aligned with the broader stance of its General Council, which comprises EU central bank governors.
Ongoing Discussions Among Central Banks
Lagarde acknowledged conversations with Czech officials and reiterated that any decisions remain within their jurisdiction. However, she maintained that all central banks under the ECB umbrella prioritize liquidity and security when managing reserves.
The discussions on Bitcoin reserves emerged following a statement by Czech National Bank Governor Ales Michl. He indicated that the CNB would explore the possibility of diversifying its reserves with alternative assets.
However, Lagarde reaffirmed her confidence that no central bank within the ECB’s General Council would adopt Bitcoin.
Czech National Bank Explores Diversification
Michl recently told the Financial Times that the CNB was evaluating whether Bitcoin could represent 5% of its reserves. Following public interest, he clarified on social media that discussions were still in the preliminary stages.
Meanwhile, the Czech finance minister also expressed concerns regarding adopting Bitcoin in the country’s reserve.
Notably, the CNB’s seven-member policy board approved an assessment of alternative asset classes. The bank announced that its evaluation would focus on diversification and potential returns.
However, the statement did not specifically mention Bitcoin. Officials confirmed that no changes would be made until further decisions were reached.
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