European Central Bank (ECB) President Christine Lagarde has expressed doubt that any EU country will embrace Bitcoin as a reserve currency, highlighting widespread skepticism regarding the role of cryptocurrency in central bank reserves.
Her comments were prompted by the approval granted to Czech National Bank (CNB) Governor Aleš Michl to explore alternative assets for the reserves of the Czech Republic.
Lagarde's skepticism appears to be at odds with the viewpoints of some EU nations. Michl has raised the possibility of dedicating up to 5% of the Czech Republic's reserves to Bitcoin, sparking varied reactions among officials.
The ECB President reiterated that Bitcoin fails to meet the necessary criteria for inclusion in central bank reserves, emphasizing the ECB's enduring stance against the adoption of cryptocurrency in the EU's monetary framework.
While the Czech Republic is an EU member state, it does not utilize the euro, affording its central bank greater flexibility in financial decision-making.
The nation has exhibited a pro-Bitcoin stance in recent times, with adjustments in crypto taxation regulations introduced in December.
The discussion surrounding Bitcoin reserves extends beyond the Czech Republic, with former German Finance Minister Christian Lindner proposing further exploration of the concept.
Switzerland is also spearheading efforts to supplement gold reserves with Bitcoin on a national scale, with a referendum required to be pursued should 100,000 signatures be gathered by mid-2025.
In the U.S., various states are increasingly considering incorporating Bitcoin into their reserves, with over 15 states introducing bills to allocate funds for Bitcoin acquisitions.
Texas has designated Bitcoin reserves as a key goal for 2025, while Illinois and Indiana are assessing similar legislative proposals.
Former President Donald Trump has issued an executive order to investigate the establishment of a digital asset reserve, underscoring global discussions on Bitcoin's viability as a reserve asset.
Central banks and policymakers around the world are diligently evaluating the advantages and drawbacks of integrating digital assets into their financial systems.