Key Takeaways
- ECB President Christine Lagarde rejects Bitcoin as a reserve asset.
- Czech National Bank is analyzing Bitcoin for potential reserves.
- ECB cut interest rates to 2.75% amid slowing eurozone growth.
Following the European Central Bank’s (ECB) latest interest rate cut, ECB President Christine Lagarde reiterated her long-standing skepticism toward Bitcoin.
When asked about Czech National Bank (CNB) Governor Aleš Michl’s proposal to allocate up to 5% of CNB reserves to Bitcoin, Lagarde made it clear that the ECB does not see the digital asset as a viable reserve currency.
Strong opposition from Lagarde
Lagarde stated during a press conference on January 30:
I am confident that Bitcoins will not enter the reserves of any of the central banks of the members of the general council.
Security & liquidity concerns
She cited Bitcoin’s lack of liquidity and security risks, stating that reserves should not…
… be plagued by the suspicion of money laundering or other criminal activities.
Czech Bitcoin reserve plan faces opposition
Despite Lagarde’s position, Governor Michl later announced that the CNB Bank Board had approved a proposal to analyze new asset classes, including Bitcoin.
However, his plan faces domestic opposition, with Czech Finance Minister Zbyněk Stanjura voicing concerns over the potential purchase of billions of euros worth of Bitcoin.
ECB cuts rates amid economic slowdown
The ECB’s interest rate cut was the fifth reduction since June, bringing the deposit rate down to 2.75% from 3.0%.
The move comes as inflation stabilizes near the ECB’s 2% target, though economic growth in the eurozone remains weak.
Future rate cut outlook
With continued global trade uncertainty, including potential U.S. tariffs, the ECB left the door open for further rate cuts in the coming months.
