European Central Bank (ECB) President Christine Lagarde has made it clear whether central banks will hold Bitcoin now as a growing number of companies like Tesla accept the cryptocurrency. Lagarde remains skeptical of Bitcoin after recently saying it “did some fun deals”.
ECB chief Christine Lagarde denies that the central banks will hold Bitcoin
After Elon Musk’s Tesla invested $ 1.5 billion in Bitcoin, the President of the European Central Bank (ECB), Christine Lagarde, made it clear whether the central banks would hold Bitcoin.
During a conference call hosted by The Economist on Wednesday, Lagarde said she did not consider Bitcoin to be real currency, stressing that central banks would not keep it as a reserve currency. She was quoted by Business Insider as saying:
It is very unlikely. I would say it is out of the question.
Lagarde recently called on all countries, especially the G7 or G20 countries, to introduce more regulations on Bitcoin. She said Bitcoin was “a highly speculative asset that has done some fun business and some interesting and utterly reprehensible money laundering activity.” Many people soon pointed out that she was wrong and that most of the illegal activities are carried out in fiat currencies.
Although the President of the ECB is skeptical of cryptocurrencies like Bitcoin, he noted that the coronavirus pandemic has pushed economies to accelerate digital adoption and the digital euro may be ready within four years.
Do you think central banks will hold Bitcoin at some point? Let us know in the comments below.
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