Lagarde Dismisses Bitcoin for ECB Reserves Amid Rate Cuts

European Central Bank President Christine Lagarde has firmly dismissed the notion of Bitcoin being included in the reserves of member countries, citing concerns over its volatility and ties to illicit finance as reasons for its unsuitability. Her remarks come amidst increasing discussions among some EU nations, like the Czech Republic, about exploring Bitcoin as a potential reserve asset, reflecting a divide in views on its viability. Lagarde emphasized that reserves must be secure and liquid, asserting her confidence that Bitcoin will not be adopted by central banks within the General Council. This skepticism is mirrored by a broader reluctance within Europe, despite a growing trend in the U.S. where several states are considering Bitcoin reserves. The ECB's stance aligns with its long-standing position against cryptocurrency in the monetary system, while also acknowledging ongoing institutional interest in digital assets. As the debate continues, Lagarde's comments highlight the tension between traditional financial frameworks and the rising allure of cryptocurrencies.