Christine Lagarde, President of the European Central Bank (ECB), has expressed skepticism over the potential of Bitcoin being adopted as a reserve asset by central banks, including the Czech National Bank (CNB), following discussions with its governor.
During a press briefing on January 30, Lagarde reaffirmed the ECB’s stance that central bank reserves should be “liquid, secure, and safe,” implying that Bitcoin does not meet these criteria. She conveyed confidence that Bitcoin would not be included in the reserves of any central banks under the European Council’s guidelines.
Her comments followed remarks made by Aleš Michl, Governor of the Czech National Bank, who recently proposed that the central bank explore Bitcoin as part of its asset diversification strategy. On the same day, the CNB board voted to investigate other asset classes for its reserves, but Bitcoin was not specifically mentioned.
Lagarde’s statements represent the ECB’s first public response to discussions regarding the potential inclusion of Bitcoin in central bank reserves, especially after US President Donald Trump signed an executive order in late 2024 to establish a working group exploring regulations around a national digital asset reserve. Some members of the ECB have suggested that the institution could look into developing a digital euro as a countermeasure to the US’s apparent openness to cryptocurrency.
Global Bitcoin Reserve Proposals The idea of countries adopting Bitcoin as a reserve asset has gained momentum, particularly following Trump’s presidential win in 2024. Several US states, including Texas, Utah, Illinois, and Arizona, have introduced legislation or proposed plans to create a Bitcoin reserve, inspired by a proposal from the advocacy group Satoshi Action Fund.
Ahead of the World Economic Forum, Coinbase CEO Brian Armstrong suggested in a blog post that global policymakers consider creating Bitcoin reserves as a hedge against inflation. El Salvador is currently one of the few countries actively pursuing a national Bitcoin reserve.
As of the latest update, Bitcoin’s price stands at $105,731, having experienced a 3.8% increase in the past 24 hours.
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