Catenaa, Friday, January 31, 2025 – European Central Bank(ECB) President Christine Lagarde on Thursday ruled out Bitcoin as part of the ECB’s reserves, citing security, liquidity, and regulatory concerns.
Speaking after the ECB’s widely expected decision to cut interest rates by 25 basis points to 2.75%, Lagarde dismissed speculation that the central bank could adopt Bitcoin.
She stressed that reserves must be “liquid, secure, and free from money laundering or criminal activity.”
Her remarks contrast with the approach of US Federal Reserve Chair Jerome Powell, who recently stated that commercial banks could serve crypto clients as long as they manage risks effectively.
Despite the ECB’s rejection, Bitcoin prices surged 3% in the past 24 hours, surpassing $105,000. Some US states and other nations continue exploring Bitcoin as a strategic reserve asset.
Lagarde also signaled potential future rate cuts, noting that while inflation remains above the 2% target, economic conditions could justify further easing. Market analysts predict at least three additional rate reductions in 2025.
