European Central Bank President Christine Lagarde has poured cold water on speculation that member countries will add Bitcoin to their reserves any time soon. 

At a Thursday press conference in Frankfurt, Lagarde said Bitcoin’s volatility and ties to illicit finance make it unfit as a reserve asset.

“There is a view around the table of the governing council … that reserves have to be liquid, that reserves have to be secure, that they have to be safe,” Lagarde said. “I’m confident that Bitcoins will not enter the reserves of any of the central banks of the general council.”

Her comments underscore continued skepticism toward Bitcoin among lawmakers in Europe despite the asset’s recent appreciation and growing adoption by governments and institutions across the Americas. 

While the European Central Bank cannot directly forbid its member states from investing in Bitcoin, it can enforce its will through investigations, sanctions, and administrative penalties.

Bitcoin’s price has increased 150% over the last 12 months, bolstered by the

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Author: Liz Napolitano