European Central Bank (ECB) President Christine Lagarde
stated that Bitcoin (BTC) is unlikely to be adopted as a reserve asset by EU
banks. This follows the Czech National Bank’s (CNB) proposal to allocate 5% of
public funds to Bitcoin as part of its reserve diversification strategy.
The CNB was set to review this proposal on January 30, with the
potential investment exceeding $7.3 billion, based on its $146 billion in
total reserves.
ECB Opposes Bitcoin, EU Pursues Digital Euro
During the January 30 conference, Lagarde reaffirmed that
Bitcoin would not meet the ECB’s criteria for reserves, which prioritize
liquidity, security, and stability. However, other EU countries, including
Poland, Slovenia, Switzerland, Germany, and the Czech Republic, have explored
Bitcoin reserve options.
The President of the European Central Bank says there will be No strategic Bitcoin reserves. She emphasizes reserves must be liquid, secure & safe. In case you did not know,Reserves will be “Reserved” for utility digital assets. pic.twitter.com/5Eu2OU0x2W
— Vandell | Black Swan Capitalist (@vandell33) January 30, 2025
Meanwhile, the US has banned central bank digital currencies
(CBDCs) through an executive order by former President Donald Trump, while the
EU continues its Digital Euro project to compete with dollar-pegged
stablecoins.
CNB Considers Bitcoin in Reserve Strategy
CNB Governor Aleš Michl, who proposed the Bitcoin
initiative, expressed confidence in Bitcoin’s long-term value despite its
volatility. He has emphasized the need for reserve diversification and noted
that Bitcoin could play a role in this strategy. No changes will be made until
further analysis is completed.
Czech National Bank May Allocate Up to 5% of Reserves to Bitcoin as Part of Diversification Strategy, Potentially Acquiring BTC Worth Around $7.3 Billion—————💰Coin:BTC ( $BTC ) $102,719.10—————NFA. pic.twitter.com/lnX44WiIyH
— COINOTAG NEWS (@coinotagen) January 29, 2025
On Thursday, the CNB board approved a proposal to explore
investing reserves in additional asset classes, with Michl suggesting that
Bitcoin could be considered for diversification, Coindesk reported.
“My goal is to diversify the portfolio, so if bitcoin
is good [for that], then let’s have it,” said Michl.
BTCUSD Bounces Off Trendline, Support Formed
BTCUSD has been trending upward, following a trendline on
the H1 chart. The price has bounced multiple times off the trendline’s support.
As of now, it appears to have found horizontal support at 104,000. This
suggests that BTCUSD is receiving support from a confluence area, which may
attract more buyers and drive the price further upwards.
This article was written by Tareq Sikder at www.financemagnates.com.
Source link
