ECB president Christine Lagarde 'confident' bitcoin will not enter EU central bank reserves

Quick Take

  • ECB president Christine Lagarde affirmed on Thursday that bitcoin would not be included in the eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.
  • Her remarks come as the digital asset’s price rose 3% in the past 24 hours to around $105,000, amid ongoing global debate over its role as a strategic reserve asset.

European Central Bank (ECB) president Christine Lagarde said bitcoin is not an option for the eurozone’s central bank reserves, citing concerns over liquidity, security and regulatory scrutiny.

Speaking at the official press conference following the ECB’s latest 25-basis-point interest rate cut on Thursday—the fifth such cut since the central bank began easing monetary policy in June 2024. The reduction brings the ECB's deposit facility, its key rate, to 2.75%.

"There is a view around the table of the Governing Council and most likely the General Council as well that reserves have to be liquid, that reserves have to be secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities," Lagarde said, emphasizing the consensus among policymakers. "And as a result, I’m confident that bitcoin will not enter the reserves of any of the central banks of the General Council."

Lagarde’s position on bitcoin and global regulation

While Lagarde’s latest comments focus on bitcoin’s suitability as a reserve asset, they come amid a growing global debate about bitcoin’s role in national treasuries. In January 2021, Lagarde vocalized her view that bitcoin is “highly speculative” and requires strong global regulation to address financial crime risks.

At the Reuters Next conference, Lagarde said bitcoin has conducted "some funny business and some interesting and totally reprehensible money laundering activity."

In the past 24 hours, the price of the bitcoin increased by 3%, trading around the $105,000 mark at press time, according to The Block's Price Page.


Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

TAGS
ECB

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].

Editor

To contact the editor of this story:
Lawrence Lewitinn at
[email protected]

WHO WE ARE

The Block is a news provider that strives to be the first and final word on digital assets news, research, and data.

+ Follow us on Google News
Connect with the block on