
Key Points:
- Christine Lagarde confirms Bitcoin will not be included in the eurozone’s central bank reserves due to concerns over liquidity, security, and regulatory scrutiny.
- ECB announces a 25-basis-point reduction in the deposit facility rate, bringing it to 2.75%, signalling continued economic support.
- Lagarde emphasizes the risks of Bitcoin’s volatility and its association with money laundering, making it unsuitable for central bank reserves.
European Central Bank (ECB) President Christine Lagarde firmly rejected the idea of including the Eurozone’s central bank Bitcoin reserves.
ECB Firmly Rejects Bitcoin Reserves Due to Concerns
During a press conference following the ECB’s latest interest rate decision, Lagarde addressed concerns over liquidity, security, and regulatory scrutiny, explaining why the cryptocurrency would not be considered for the Bitcoin reserves of any central banks within the ECB’s General Council.
This statement came after the ECB announced a 25-basis-point cut to its key interest rate, marking the fifth rate cut since the central bank began its monetary easing program in June 2024. The new rate of 2.75% for the deposit facility signals the ECB’s ongoing efforts to support the economy and manage inflation. However, despite these financial adjustments, Bitcoin has been firmly excluded from the eurozone’s monetary strategy.
Read more: Strategic Bitcoin Reserve Act Pushing for Approval in Illinois
Interest Rate Cut and Ongoing Economic Support by ECB
Lagarde emphasized that there is a strong consensus within the ECB’s Governing Council, and likely the General Council as well, that central bank Bitcoin reserves must remain liquid, secure, and free of any suspicion of illicit activities. She further highlighted that Bitcoin’s volatility and potential association with money laundering made it an unsuitable candidate for inclusion in central bank reserves.
Lagarde confidently stated that Bitcoin will not enter the reserves of any central bank under the jurisdiction of the ECB. The rejection reflects broader caution around the integration of cryptocurrencies into the traditional financial system, with a focus on maintaining stability and regulatory compliance in the eurozone’s economic policies.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing. |