Key Points
- European central banks may begin accumulating Bitcoin by 2025, as per blockchain expert Fiorenzo Manganiello.
- The EU’s Markets in Crypto-Assets regulation is expected to stabilize the crypto market and legitimize Bitcoin as a financial asset.
Fiorenzo Manganiello, a blockchain expert, has predicted that Bitcoin accumulation might become a trend among European central banks by 2025.
This forecast comes in the wake of the European Union’s implementation of the Markets in Crypto-Assets regulation. The regulation aims to bring stability to the crypto market by introducing clear legal guidelines.
Manganiello’s Argument
Manganiello, who is the co-founder of LIAN Group and a professor at Geneva Business School, believes that the regulatory clarity provided by MiCA will motivate institutional investors to enter the market. This could reduce volatility and establish Bitcoin as a legitimate financial asset.
He further suggests that this shift might extend to central banks. These institutions may start holding Bitcoin to hedge against instability in traditional markets.
Manganiello said, “Bitcoin is becoming too dominant to ignore. This year, we might see some European central banks start to build their reserves of the currency. They aim to diversify their holdings and strengthen their defences against traditional market volatility. The MiCA rules will undoubtedly revitalize the European crypto scene and encourage even the most traditional financial institutions, such as central banks, to participate.”
Impact of MiCA
The European Union introduced the Markets in Crypto-Assets framework in late 2024. This established a cohesive regulatory system for the crypto industry across its member states.
This initiative was launched on April 20, 2023, when the EU Parliament passed MiCA. The regulation addresses persistent challenges in the rapidly evolving crypto sector, including fraud, market volatility, and insufficient investor protections.
Before MiCA, crypto companies had to navigate a complex landscape of different national regulations. Some nations encouraged innovation, while others imposed significant barriers. MiCA aims to replace this fragmented approach with a unified set of rules for all 27 EU countries.
Manganiello commented, “As MiCA reassures traditional investors, we’ll see not only institutions but even central banks considering Bitcoin.”
If European central banks decide to accumulate Bitcoin, it would indicate a significant shift in Bitcoin’s role within the global financial system.