The ECB rejects Bitcoin as reservations, the Czech National Bank Sopesan

The president of the ECB, Christine Lagarde, dismissed the idea that European central banks added bitcoin to their reservations, but the Czech National Bank has just approved a plan to explore exactly that.

Lagarde, speaking at a press conference in Frankfurt on Thursday, said that bitcoin is too volatile and is also linked to illegal activities, which makes it inappropriate as a reserve asset.

“There is a view around the Bureau of the Governing Council … that the reserves must be liquid, that the reserves must be safe, that they have to be safe,” said Lagarde. “I am sure that Bitcoins will not enter the reserves of any of the central banks of the General Council.”

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Last minute news: President of the European Central Bank, Christine Lagarde, says: “I'm sure <a target="_blank" href="https://twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin It will not be included in EU reserves. ” pic.twitter.com/h9jefty0dg

– The_boiidan (@therealboiidan) <a target="_blank" href="https://twitter.com/TheRealBoiidan/status/1885261397015003399?ref_src=twsrc%5Etfw”>January 31, 2025

The Czech National Bank explores bitcoin's investment despite the rejection of Lagarde

Lagarde's comments reflect the vision of many in Europe that remain skeptics about bitcoin despite their growing value and growing adoption in the Americas and many nations in development.

But the Czech National Bank thinks differently. Governor Aleš Michl proposed this week to assign 5% of the 140 billion euros of the bank to bitcoin, and yesterday that The proposal was approved For the bank.

The Czech Republic is not part of the Eurozone, the Currency Union of the EU member states, but is represented in the General Council of the ECB, whose Lagarde members said it was sure that bitcoin would not add to their reserves.

While the European Central Bank cannot prevent its member states from investing in bitcoin, it can influence its decisions through research, fines and sanctions.

Meanwhile, institutional investment in bitcoin has grown, and some states of the United States are considering creating their own bitcoin reserves. States like Pennsylvania, Texas and Illinois are now exploring this idea.

“Lagarde says that bitcoin is not suitable for reserves because it must be 'liquid, safe and safe'”. “However, bitcoin is one of the most liquid assets in the world, which quotes 24/7 without requiring a counterpart. ”

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