Christine Lagarde Doubts Bitcoin Reserves as EU Nations Explore Alternatives
European Central Bank (ECB) President Christine Lagarde remains firmly opposed to the idea of any EU nation adopting Bitcoin as part of its central bank reserves, underscoring her skepticism toward cryptocurrency’s role in traditional finance.
Czech Republic Challenges ECB’s Stance
Lagarde’s remarks follow an announcement from Czech National Bank (CNB) Governor Aleš Michl, who recently secured board approval to explore alternative assets for the country’s reserves. Michl has suggested allocating up to 5% of the Czech Republic’s reserves to Bitcoin, a proposal that has sparked debate among officials.
Despite Lagarde’s resistance, the Czech Republic has demonstrated increasing openness toward Bitcoin. In December, the country introduced policies aimed at easing cryptocurrency taxation, reinforcing its pro-Bitcoin stance. As the country operates outside the eurozone, its central bank enjoys greater autonomy in financial decision-making.
EU and Global Interest in Bitcoin Reserves Grows
Lagarde maintains that Bitcoin lacks the liquidity and security necessary for central bank reserves, echoing the ECB’s long-standing caution regarding digital assets. However, other EU nations are showing interest in Bitcoin as a hedge against centralized monetary policies.
In Germany, former Finance Minister Christian Lindner recently proposed examining Bitcoin’s viability as a reserve asset. Meanwhile, Switzerland is actively pushing for Bitcoin’s inclusion alongside gold in its national reserves. Swiss lawmakers must gather 100,000 signatures by mid-2025 to trigger a national referendum on the matter.
Crypto influencer Robin Seyr criticized Lagarde’s stance, suggesting she is either uninformed or deliberately dismissing Bitcoin’s potential. Likewise, financial commentator Simon Dixon accused the ECB of prioritizing central bank digital currency (CBDC) initiatives over the financial autonomy of EU nations.
US States Move Toward Bitcoin Reserves
The Bitcoin reserve debate extends beyond Europe, with momentum building in the United States. Over 15 states have introduced bills to allocate funds for Bitcoin purchases, with Texas declaring Bitcoin reserves a top priority for 2025. Illinois and Indiana are also evaluating similar measures.
At the federal level, former President Donald Trump signed an executive order to study the feasibility of a national digital asset reserve, further fueling discussions on Bitcoin’s role in financial systems worldwide.
As governments and central banks grapple with the risks and benefits of integrating digital assets, Bitcoin’s potential as a reserve asset remains a focal point of global monetary policy discussions. While Lagarde and the ECB maintain their opposition, growing interest from both EU nations and US states suggests that Bitcoin’s role in reserves may soon become a reality despite institutional resistance.