ECB President Lagarde Rules Out Bitcoin in EU Reserves, Here’s Why

European Central Bank (ECB) President Christine Lagarde has reaffirmed that Bitcoin will not be included in the official reserves of the European Union.

European Central Bank (ECB) President Christine Lagarde has definitively ruled out the possibility of Bitcoin (CRYPTO: BTC) being included in the official reserves of the European Union.

During a press conference, Lagarde stated that the digital asset fails to meet the necessary criteria for liquidity, security, and safety, rendering it unsuitable for central bank holdings.

“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. And as a result, I'm confident that Bitcoin will not enter the reserves of any of the central banks of the General Council,” she said.

ECB officials have previously expressed concerns regarding the use of cryptocurrencies in illicit activities, owing to their decentralized and pseudonymous nature.

In March 2023, ECB Executive Board member Fabio Panetta stated that crypto assets pose a threat to financial stability and highlighted the need for stringent regulation and supervision.

“Experience with crypto assets over the past few years has shown that they can pose a threat to financial stability and that they need to be subjected to close regulation and supervision,” Panetta noted.

Despite the ECB's stance on Bitcoin, the digital asset continues to gain traction among institutional investors. Recently, BlackRock announced plans to launch a spot Bitcoin private trust for its clients.