ECB’s Lagarde Firmly Rejects Bitcoin for European Central Bank Reserves

ECB President Rejects Bitcoin as Reserve Asset While Czech National Bank Considers 5% Allocation

  • European Central Bank President rejects Bitcoin as a reserve asset due to volatility and AML concerns.
  • Czech National Bank considers allocating up to 5% of reserves to Bitcoin.
  • Czech central bank votes to analyze new asset classes for reserves without specific mention of crypto.
  • Trump administration explores “national digital asset stockpile” through seizures.
  • Utah and Texas advance legislation to potentially include Bitcoin in state treasury holdings.

The European Central Bank President Christine Lagarde has firmly opposed the inclusion of Bitcoin in European central bank reserves, creating tension with the Czech National Bank’s consideration to allocate up to 5% of its reserves to the cryptocurrency.

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During a recent press conference, Lagarde emphasized that reserves must meet strict criteria, stating, “reserves have to be liquid, secure, and safe, that they should not be plagued by the suspicion of money laundering or other criminal activities.”

Aleš Michl, Governor of the Czech National Bank, took a contrasting position in his interview with the Financial Times, embracing his role as a pioneer in the conservative banking sector. “I used to run an investment fund, so I’m a typical investment banker I would say, I like profitability,” Michl explained.

While the Czech Republic maintains membership in the ECB General Council despite not using the euro, their central bank’s recent vote carefully avoided direct cryptocurrency mentions. The bank committed to transparent quarterly and annual disclosures of any reserve composition changes.

In the United States, the landscape appears more receptive to cryptocurrency integration. The Trump administration is exploring a “national digital asset stockpile,” primarily through asset seizures rather than direct purchases. At the state level, Utah has advanced legislation with an 8-to-1 committee vote in favor of Bitcoin treasury holdings, while Texas currently has two related bills under consideration.

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The divergent approaches between European and American institutions reflect the ongoing global debate about cryptocurrency’s role in traditional financial systems. While some view Bitcoin as a volatile risk, others see it as an opportunity for portfolio diversification in an evolving financial landscape.

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