“Bitcoin Will Not Enter the Reserves of Any EU Central Bank”: European Central Bank’s Lagarde

European Central Bank President Christine Lagarde pours cold water on any talks of central banks within the European Union adopting Bitcoin strategic reserves. A major narrative driving the crypto markets with the turn of the new year is that Bitcoin is set to become a global reserve asset on par with gold. However, the asset's journey to achieving this status as a new monetary standard is not likely to be smooth sailing, especially if the European Central Bank President has anything to say about it. Christine Lagarde Kicks Bitcoin Reserve Talks European Central Bank President Christine Lagarde has poured cold water on any talks of central banks within the European Union adopting Bitcoin strategic reserves. Speaking at a press conference following the ECB's interest rate decision on Thursday, January 30, Lagarde expressed confidence that no central bank in the ECB's General Council will adopt the leading crypto asset as a strategic reserve. "I'm confident that ... bitcoins will not enter the reserves of any of the central banks of the General Council," she asserted. The statement from Lagarde follows comments from Czech Republic National Bank Governor Aleš Michl suggesting that the bank was set to consider diversifying up to 5% of its reserves, about $7.3 billion, into the digital asset. According to Lagarde, however, Bitcoin does not fit into the ECB General Council's definition of a reserve asset. "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," she asserted, arguing against Bitcoin's fit as a reserve asset. Lagarde's statements make it less likely that the Czech Republic will move ahead with any Bitcoin reserve plans. While the ECB cannot explicitly dictate how member states choose to invest their funds, it can use tools like sanctions and penalties to impose its will. Still, all hope may not be lost. On Thursday, the Czech central bank approved the proposal to consider investing its reserves in other assets, which Michl had asserted could include Bitcoin earlier in the week.