Christine Lagarde, President of the European Central Bank (ECB), stated that the Czech National Bank is unlikely to add Bitcoin to its reserves following a conversation with its governor.
Speaking to the press on January 30, she stated that central bank reserves must be “liquid, secure, and safe,” implying that Bitcoin does not fit these requirements. She also stated that she was “confident” that BTC would not enter the reserves of council-regulated banks.
Her statement came after Czech National Bank Governor AleÅ¡ Michl proposed investing in bitcoin to diversify reserves. On January 30, the bank’s board agreed to explore new asset types but did not especially mention Bitcoin.Â
This was one of the first times the ECB president spoke about the possibility of Bitcoin being part of central bank reserves.
It also happened after U.S. President Donald Trump issued an executive order to investigate a committee to examine regulations governing a national digital asset stockpile. In response to the US government’s growing interest in cryptocurrency, several ECB members have proposed focusing on the development of a digital euro.
More countries are considering creating crypto reserves after Trump’s election win in November 2024. Lawmakers in Texas, Utah, Illinois, and Arizona have presented bills or proposed plans for a Bitcoin stockpile, inspired by proposals from the Satoshi Action Fund.
Coinbase CEO Brian Armstrong also proposed that countries build Bitcoin reserves to protect against inflation, ahead of the World Economic Forum. As of January, El Salvador is one of the few countries openly planning to stockpile Bitcoin for its national reserves.
At the time, Bitcoin’s price was $105,485, up about 2% in the last 24 hours.
