Key Points
- Christine Lagarde, ECB president, confirms the bank will not hold Bitcoin reserves.
- Swiss and Norwegian banks show potential interest in Bitcoin via indirect investments.
Christine Lagarde, the president of the European Central Bank (ECB), has reiterated the institution’s stance of not considering Bitcoin as a reserve asset.
Lagarde, known for her skepticism towards Bitcoin, remains unmoved despite the increasing trend of entities using Bitcoin as a hedge against inflation.
Lagarde’s Opposition to Bitcoin
During a media conference on January 30, Lagarde expressed her confidence that Bitcoin would not be included in the reserves of any central banks of the General Council.
Lagarde’s criticism of Bitcoin and other digital assets is not new. She has repeatedly opposed Bitcoin, arguing that it is used for money laundering and illicit finance.
Following the ECB’s latest interest rate decision, Lagarde further argued that Bitcoin’s speculative nature, liquidity constraints, and regulatory uncertainties make it an unsuitable reserve asset.
Views on Bitcoin in Europe
Despite Lagarde’s comments, not all European entities may align with this view.
Banks in Norway and Switzerland have shown potential interest in Bitcoin. They have invested in companies like MicroStrategy, which hold Bitcoin in their balance sheets. While these are not direct Bitcoin investments, they indicate a potential willingness to incorporate Bitcoin into financial strategies.