Lagarde Dismisses Bitcoin Inclusion in Central Bank Reserves

ECB President Christine Lagarde dismissed the idea of including Bitcoin in central bank reserves, following remarks by Ales Michl from the Czech National Bank. Lagarde emphasized the importance of liquidity and security in reserves and dismissed Bitcoin's volatile nature, aligning with other central banks' cautious stance on cryptocurrencies.

European Central Bank President Christine Lagarde firmly rejected the notion of incorporating Bitcoin into central bank reserves, following a proposal by her Czech counterpart, Ales Michl. The Czech Republic, although not an eurozone member, is part of the EU, situating its central bank within the ECB's General Council. This council, led by Lagarde, advises member states on financial policies.

Asked about the potential inclusion of Bitcoin in reserves, Lagarde clarified after discussions with Michl that there is no place for the cryptocurrency in European central banking. "I am confident that... bitcoins won't enter the reserves of any of the central banks of the General Council," she stated during a press briefing following the ECB's interest rate decision.

Michl's remarks stirred discussion within the financial sector, as central banks have historically avoided cryptocurrencies, which were initially conceived as a substitute for traditional monetary systems. Lagarde reported a constructive talk with Michl, achieving consensus that central bank assets should maintain liquidity, security, and safety.

(With inputs from agencies.)