ECB’s Lagarde Rejects Bitcoin as Reserve Asset

European Central Bank (ECB) President Christine Lagarde has firmly dismissed the possibility of European nations adding Bitcoin to their reserves in the near future.

At a press conference in Frankfurt on Thursday, Lagarde criticized Bitcoin’s volatility and its association with illicit finance, arguing that it fails to meet the standards of a legitimate reserve asset.

“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.”

Europe’s Bitcoin Skepticism vs. Global Adoption

Lagarde’s remarks reflect the ongoing skepticism toward Bitcoin among European lawmakers, despite:

• Bitcoin’s 150% price surge over the past 12 months.
• The approval of U.S. spot Bitcoin ETFs, which drove institutional inflows into BTC.
• Growing interest in Bitcoin reserves at the U.S. state level.

Several U.S. states, including Pennsylvania, Texas, and Illinois, are considering legislation to establish Bitcoin reserves.

Last year, Sen. Cynthia Lummis proposed adding Bitcoin to the U.S. national balance sheet, calling it a way to “supercharge the U.S. dollar’s position as the world reserve currency.”

Earlier this month, President Donald Trump took a step toward crypto integration, issuing an executive order establishing the Presidential Working Group on Digital Asset Markets.

While the group will study the feasibility of adding digital assets to national reserves, Bitcoin was notably absent from the order’s language.

European Bitcoin Advocates Face Opposition

While the ECB opposes Bitcoin as a reserve asset, some European officials are warming up to the idea:

• In Italy, a government official advocated for public and private Bitcoin investments, after the nation’s largest bank purchased $1 million worth of BTC.
• Czech National Bank Governor Aleš Michl said this week that he would consider adding Bitcoin to the country’s reserves.

Despite these developments, strong political resistance remains, making Bitcoin adoption at the national reserve level in Europe unlikely for now.

ECB’s Influence Over Member States

The ECB cannot directly ban its member states from holding Bitcoin—but it can exert regulatory pressure through investigations, sanctions, and administrative penalties.

This could discourage Eurozone nations from following the U.S. and Latin American examples in exploring Bitcoin-backed reserves.

With the Czech Republic outside the Eurozone, Michl’s Bitcoin proposal may face fewer roadblocks compared to nations under ECB monetary control.

The Future of Bitcoin as a Reserve Asset

While the ECB remains opposed, the broader trend suggests that governments worldwide are increasingly considering Bitcoin for their balance sheets.

If more U.S. states and non-Eurozone nations move forward, European policymakers may eventually have to reconsider their stance—or risk falling behind in the global financial shift toward digital assets.

For now, Lagarde and the ECB remain firm: Bitcoin won’t be entering their reserves anytime soon.