ECB's Lagarde: Bitcoin Unfit for Central Bank Reserves

European Central Bank (ECB) President Christine Lagarde has reiterated her stance that Bitcoin is not suitable for central bank reserves, despite growing interest from sovereign entities in using the cryptocurrency as a hedge against inflation. Speaking at a media conference on January 30, Lagarde expressed confidence that Bitcoin would not be included in the reserves of any central banks within the ECB's General Council.

Lagarde, a long-time Bitcoin skeptic, has consistently criticized the cryptocurrency, citing concerns about its speculative nature, liquidity constraints, and regulatory uncertainties. She has also argued that Bitcoin serves as a vehicle for money laundering and illicit finance. In her latest comments, Lagarde emphasized that reserves should be liquid, secure, safe, and free from suspicion of criminal activities.

The ECB's approach to Bitcoin as a reserve asset has been clear, with Lagarde's comments reaffirming the central bank's previous rhetoric. However, not all European countries share the ECB's stance. Banks in Norway and Switzerland have invested in companies like MicroStrategy, which hold Bitcoin on their balance sheets, indicating a possible appetite for Bitcoin exposure and a willingness to integrate the asset into financial strategies.