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The European Council has determined that Bitcoin is not appropriate as a strategic monetary reserve for central banks due to its insufficient liquidity, reliability, and safety.
Bitcoin will not be incorporated into the reserves of eurozone central banks, as confirmed by Christine Lagarde, President of the European Central Bank (ECB), during a press conference. She highlighted that central bank reserves must be liquid, dependable, and secure, and should not be subject to risks associated with money laundering or other illicit activities.
Lagarde mentioned that she had discussed this issue with the Governor of the Czech National Bank (CNB), who had publicly expressed a similar initiative. However, she emphasized that the final decision would lie with the CNB’s board of directors.
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Meanwhile, Bloomberg reports that Zbyněk Stanjura, Finance Minister of the Czech Republic, cautioned the country’s central bank against adopting Bitcoin as a reserve asset due to BTC’s significant volatility. Nevertheless, he reiterated the CNB’s autonomy in making such financial decisions.
The CNB board of directors generally approved Governor Aleš Michl’s suggestion to explore investments in alternative asset classes. However, Bitcoin was not specifically mentioned in the bank’s official press release following its board meeting. Any changes to the CNB’s financial reserve structure will be revealed in quarterly reports on international reserves and annual financial statements.
Recently, it was disclosed that the CNB governor intended to propose allocating 5% of the Czech Republic’s foreign exchange reserves into Bitcoin as part of a diversification strategy. Despite skepticism from European policymakers, the global trend of adopting BTC as a strategic reserve asset continues to gain traction.
Сообщение European Central Financial institution Rejects Creation of Bitcoin Reserve появились сначала на CoinsPaid Media.
