By The Rio Times | Created at 2025-01-30 18:45:31 | Updated at 2025-01-31 01:36:57
7 hours ago
The European Central Bank (ECB) has drawn a clear line on cryptocurrency adoption. ECB President Christine Lagarde declared on January 30, 2025, that Bitcoin will not be included in the bank’s reserves.
Lagarde stressed that central bank assets must be liquid, secure, and free from suspicion of illegal activities. This stance comes as cryptocurrencies gain traction in financial circles.
The Czech National Bank had proposed allocating 5% of its €140 billion reserves to Bitcoin, aiming to diversify its holdings. However, Lagarde’s statement effectively closes the door on such initiatives within the ECB’s sphere of influence.
Bitcoin’s market performance remains strong despite the ECB‘s position. The cryptocurrency reached $104,966 on the day of Lagarde’s announcement, reflecting a 2.7% daily gain.
This surge follows the recent approval of spot Bitcoin ETFs in the United States, which has increased institutional interest. The ECB’s decision highlights the ongoing debate between traditional finance and the crypto world.
While 13 nations reportedly hold Bitcoin reserves, major central banks remain cautious. Critics point to Bitcoin’s volatility and lack of intrinsic value as significant concerns.
As governments face inflation and limited money supply, some view Bitcoin as a potential hedge. However, the ECB’s stance suggests that major central banks will likely maintain their conservative approach to reserve assets for the foreseeable future.
This development underscores the complex relationship between established financial institutions and emerging digital assets. As the global financial landscape evolves, the role of cryptocurrencies in national treasuries will continue to be a topic of careful consideration and heated discussion.
