There is No Way Central Banks Would Hold Bitcoin, Says ECB President

As always, the president of the European Central Bank has proved with her statement that she will continue to be a strong opposer of cryptocurrencies. Even after gaining so much mainstream adoption and investments, the cryptocurrency industry is still not able to be in the good books of the ECB president.

According to the latest reports, the European Central Bank president, Christine Lagarde has again made a statement providing clarification around central bank adoption of cryptocurrencies.

Lagarde has provided clarification around the top that was rotating in the crypto-mainstream markets. The question was around the potential of central banks adopting cryptocurrencies or not. Therefore, the president of the ECB has made a statement that is rather concerning for cryptocurrency enthusiasts and crypto-firms.

Lagarde has stated that she doubts that the central banks from Europe would ever consider holding Bitcoin (BTC). According to Lagarde, cryptocurrencies and bitcoin (BTC) in particular have done some very funny business ever since the launch of the crypto-industry.

The assets have always proven to be highly volatile, which makes them a completely unreliable asset for investments. As the banks solely rely on the services and benefits they provide their users, therefore, the central banks would not risk losing their business.

The central banks would invest in bitcoin (BTC) if they see that the asset is stable enough to be relied upon. Even in the last 45 days, bitcoin (BTC) has proven how volatile and unstable it is as compared to other assets such as gold and fiat currencies.

It was during an interview with “The Economist” on Wednesday, February 10, 2021, when Lagarde shared her views about Bitcoin (BTC). During the interview, the interviewer posed the question to her by providing her a reference for Tesla.

The host at the interview quoted how Tesla had confirmed its investment of $1.5 billion in bitcoin and how much adoption the asset has gathered in the past couple of years.

However, Lagarde still thinks that it is highly unlikely for the central banks to adopt and hold bitcoin (BTC). In order for the central banks to adopt the asset, bitcoin (BTC) first needs to become stable and mature.

Due to its highly volatile and fluctuating nature in the market, Bitcoin (BTC) cannot be taken as a real currency. This is one of the main reasons why the central banks will not be considering it as a reserve currency.

It was just a month ago when the ECB president had requested for all the countries to introduce strict regulations against cryptocurrencies. Similar to Janet Yellen who is currently the US Treasury Secretary, Lagarde is of the view that cryptocurrencies are the main source of money-laundering and terrorist funding.

Therefore, it is extremely necessary to tackle this problem and bring an end to such activities once-and-for-all through strict regulations.