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The integration of bitcoin into the reserves of central banks profoundly divides economic actors. On one side, some governors advocate for a diversification of assets to adapt monetary strategies to a changing world. On the other, the European Central Bank (ECB) maintains a strict line, firmly rejecting any legitimacy of bitcoin as a store of value. This debate has taken on a new dimension following statements by Christine Lagarde. Asked at a press conference, the ECB president abruptly cut off speculation and stated that bitcoin does not meet any of the required criteria to be included in central bank reserves: “liquid, safe, and secure.” This position contrasts with that of the governor of the Czech National Bank, Aleš Michl, who is open to exploring new asset classes. This growing divergence illustrates the rift between a conservative approach to the financial system and a more pragmatic vision, held by some decision-makers who seek to anticipate upcoming monetary transformations.
Bitcoin and Central Banks : A Categoric Rejection by the ECB
“Central bank reserves must be liquid, safe, and secure. The bitcoin does not meet any of these criteria.” With these words, Christine Lagarde rejected any possibility of integrating bitcoin into the official reserves of European central banks. According to the ECB president, this asset remains too volatile, speculative, and devoid of any institutional guarantee to be used as a monetary management tool. In her view, the role of a central bank is to preserve financial stability, a mission incompatible with the unpredictable nature of bitcoin.
This stance comes as some institutions begin to question the diversification of their reserves. The Czech National Bank recently announced its intention to explore new asset classes, an initiative that could open the door to integrating alternative assets. Its governor, Aleš Michl, did not explicitly mention bitcoin, but his statements suggest that the question of cryptocurrencies is part of ongoing reflections. In light of this evolution, Christine Lagarde emphasized that the ECB maintains a conservative approach and insists on the need for coherence among European central banks. In her eyes, monetary strategy cannot be dictated by isolated decisions motivated by national choices.
Diversification of Monetary Reserves : A Divisive Debate
While Christine Lagarde categorically rejects the integration of bitcoin into central bank reserves, other actors within European monetary institutions advocate for a revision of the criteria for allocating strategic assets. The current macroeconomic environment, characterized by persistent inflation and uncertainties over monetary policies, is pushing several central banks to reassess their investment strategies. In this context, some analysts suggest that, despite its volatility, bitcoin could play a similar role to that of gold over the centuries. Once viewed as a risky and controversial asset, this precious metal is now a cornerstone of global reserves. In this logic, bitcoin could follow a comparable trajectory as its adoption and regulation evolve.
Regulatory-wise, central banks face an unprecedented challenge. While some, like the Czech National Bank, seek to broaden their investment scope by exploring assets, others, like the ECB, maintain a more cautious and rigid position. Thus, the debate goes beyond the issue of bitcoin. It raises a broader question: what place should be given to new forms of value in a rapidly changing monetary system? As the financial sector evolves under the influence of technological innovations and successive economic crises, the management of central bank reserves may need to transform much more quickly.
The ECB’s categorical rejection of bitcoin illustrates a growing rift between proponents of modernizing monetary reserves and advocates of a strictly regulated framework. While the ECB holds an inflexible position, some central banks may adopt a more experimental approach by progressively integrating new asset classes. This divergence paves the way for hybrid models, where cryptocurrencies coexist with traditional financial instruments. Therefore, the future of bitcoin in institutional portfolios will depend on upcoming economic developments, the adaptation of regulations, and technological advances. In light of these transformations, will the ECB be able to maintain its opposition, or will it be compelled to adapt its doctrine in the face of an inevitable mutation of the global monetary system?
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Diplômé de Sciences Po Toulouse et titulaire d’une certification consultant blockchain délivrée par Alyra, j’ai rejoint l’aventure Cointribune en 2019.
Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l’économie, j’ai pris l’engagement de sensibiliser et d’informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu’elle offre. Je m’efforce chaque jour de fournir une analyse objective de l’actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.
