ECB President Christine Lagarde rejected bitcoin as a reserve asset, citing a lack of liquidity, security and links to illicit finance.
Lagarde's remarks contrast with other countries such as Norway and El Salvador, which have taken a more open approach to #bitcoin .
Following Lagarde's comments, the price of bitcoin fell slightly, underscoring the ongoing debate over bitcoin's role in the global financial system. At a recent press conference, European Central Bank (ECB) President Christine Lagarde said. ECB President Christine Lagarde made it clear that bitcoin (BTC) is not seen as a reserve asset for eurozone central banks. Lagarde's remarks came amid a growing global debate on the acceptance of bitcoin, especially in the United States, where lawmakers are considering using it as a strategic reserve asset.
Lagarde gave several reasons why bitcoin cannot be used as a reserve asset. She emphasized the need for liquidity, safety and reliability of reserve assets, which she believes bitcoin lacks. Ms. Lagarde noted that bitcoin's high volatility and its association with illicit finance make it unacceptable for use as a reserve asset for central banks.
Reserve assets must be liquid, safe and secure. They should not be linked to money laundering or other criminal activities, Lagarde said.
Lagarde's statement comes at a time when other countries have become more open to bitcoin. For example, Norway's sovereign fund has increased its indirect involvement in bitcoin through investments in cryptocurrency companies.
Meanwhile, El Salvador continues to hold bitcoin despite having changed its laws to comply with the International Monetary Fund (IMF). In the U. S. , President Donald Trump created a working group to study the rules for creating national reserves of #digital assets.
After Lagarde's speech, the price of bitcoin fell slightly, trading at 104,700 U. S. dollars after falling 0.36% in the last 24 hours. The different positions of the U. S.
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