ECB closes the door to integrate bitcoins into his reserves

The integration of bitcoins into central banks deeply divides economic actors. On the one hand, some governors advocate asset diversification to adapt the monetary strategies to the world. On the other hand, the European Central Bank (ECB) camps on a strict line and firmly rejects any legitimacy of bitcoin as a reserve of value. This debate just took a new dimension after Christine Lagarde’s statements. President ECB, interviewed at a press conference, shortened speculation and confirms that Bitcoin did not meet any of the criteria needed to discover in central banks: “liquid, safe and safe”. The position that contrasts with the position of Governor of the Czech National Bank, Ales Michl, is open to the idea of ​​exploring new classes of assets. This increasing divergence illustrates a fracture between a conservative approach to the financial system and a more pragmatic vision that carries certain decisions -the trap trying to predict that cash transformations will come.

Bitcoins and Central Banks: categorical rejection of ECB

“Central banks’ reserves must be liquid, safe and safe. Bitcoin does not meet any of these criteria ”. In this words, Christine Lagarde rejected any possibility of integrating bitcoins into the official reserves of European central banks. According to President ECB, this asset remains too volatile, speculative and without any institutional warranty that will be used as a currency procedure tool. In his eyes, the role of the central bank is to maintain financial stability, an incompatible mission with an unpredictable nature of bitcoins.

This position comes when some institutions begin to question their reserves diversification. The Czech National Bank recently announced its intention to explore new assets, an initiative that could open the door of the integration of alternative assets. His governor Aleš Michl did not explicitly mention Bitcoins, but his statement suggests that the question of Kryptos is one of the current considerations. In the face of this evolution, Christine Lagarde wanted to remember that the ECB maintains a conservative approach, and insists on the need for cohesion between European central banks. In his eyes, the currency strategy cannot be dictated by isolated decisions by motivated national elections.

Diversification of cash reserves, debate that is divided

If Christine Lagarde categorically refuses to integrate bitcoins into central banks, other actors within European monetary institutions argue about the revision of allocation criteria for strategic assets. The current macroeconomic environment, which is characterized by permanent inflation and uncertainties on monetary policy, is pushing several central banks to reconsider their investment strategies. In this context, some analysts suggest that, despite its volatility, bitcoin could play a role that has played gold over the centuries. Previously perceived as a risky and controversial asset, expensive metal is now a pillar of world reserves. In this logic, bitcoin could follow a comparable trajectory because its acceptance and regulation is refined.

At the regulatory level, the central banks face an unprecedented challenge. While some, like the Czech National Bank, are trying to expand their investment spectrum by exploring assets, others like the ECB, maintain a more cautious and rigid position. The debate is therefore not limited to the question of bitcoins. It poses a wider question: What place does it give to new forms of value in multiple currency system? While the financial sector develops with the influence of technological innovations and consecutive economic crises, central banks’ reserve proceedings could be brought to transform much faster.

The categorical rejection of bitcoins Christine Lagarde illustrates a growing fracture between supporters of the modernization of money reserves and defenders of a strictly regulated framework. While the ECB camps in an adamant position, some central banks could receive an experimental approach to the progressive integration of new classes of assets. This divergence opens the way to hybrid models where cryptos would coexist with traditional financial instruments. The future of Bitcoins in institutional portfolios will therefore depend on further economic development, adaptation of regulations and technological progress. With regard to these transformations, the ECB will be able to maintain its opposition, or will it be forced to adapt its doctrine in the face of the inevitable mutation in the global currency system?

Luc Jose A.

Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.