European Central Bank President Christine Lagarde ruled out Bitcoin as an option for a strategic reserve for member states.
The Former IMF boss at a Press Conference on Thursday argued that Bitcoin’s volatility and close ties to illicit funds make it unfit for a strategic Reserve.
“There is a view around the table of the governing council … that reserves have to be liquid, that reserves have to be secure, that they have to be safe,” Lagarde said.
“I’m confident that Bitcoins will not enter the reserves of any of the central banks of the general council.” She added.
Her views on the subject matter diverge from the general sentiment amongst various nations and corporate entities.
Both parties increasingly believe that Bitcoin is a viable alternative store of value and a smart choice for a reserve asset.
Lagarde’s remark also highlights the general skepticism amongst European regulators and lawmakers on Digital assets as a whole.
This is a far cry from the dominant narrative in the Americas, where Bitcoin is being heavily adopted by financial giants like Blackrock and Fidelity.
Countries and states alike are also hopping on the Bitcoin train, making significant moves for a strategic Bitcoin reserve.
Europe seems to be the outlier in this new wave sweeping across the world.
Europe’s Over-Regulation Antics
For some years now, Europe has been perceived as where innovation goes to die. This is due to the stringent regulations and bloated bureaucracy making it difficult for businesses to innovate.
The European jurisdiction is notorious for its complex bureaucracy, strict compliance requirements, and slower innovation cycles.
The European Union (EU) and national governments enforce strict regulations that businesses must navigate, leading to high compliance costs and administrative burdens. This makes it harder for startups and small businesses to scale compared to regions with more flexible policies, like the U.S.
A perfect example of this notion is the current Markets in Crypto Assets standoff with Tether USDT, the largest stablecoin issuer in the industry.
In addition to the harsh regulatory climate for most businesses, Europe also has tough labour laws and is protectionist when it comes to big businesses.
Bitcoin at the time of the report, is exchanging hands for $105,216 dropping by 0.5%.
Yesterday, The Czech National Bank made a significant step towards adopting digital assets as an alternative store of value and a means of portfolio diversification.
