ECB: President Christine Lagarde says no to Bitcoin reserves

How do ECB President Lagarde and US Treasury Secretary Yellen feel about cryptocurrencies? Both warn of a lack of regulations, but are not fundamentally opposed to digital money.

The current soaring of Bitcoin and other cryptocurrencies is driving the monetary authorities into trouble

You see their influences dwindling as institutional and private investors trust the crypto sector. The President of the European Central Bank (ZEB) Christine Lagarde has now participated in a conference call organized by the business magazine The Economist and presented her position on the subject. She said on Wednesday, according to media reports , that she doesn’t see Bitcoin Compass as a real currency, adding that central banks won’t be holding it as a reserve currency anytime soon.

It’s very unlikely – I’d say it’s out of the question.

So Lagarde in the original sound. Most recently, ECB President Lagarde spoke rather critically about Bitcoin at a conference of the Reuters news agency in January . She called for global regulation. She also said that in some cases criminals have used the digital currency for money laundering activities and that all loopholes need to be closed.

There has to be regulation. This has to be applied and agreed … on a global level because if there is a way out, that way will be used

added Lagarde.

Yellen, like Lagarde, points out crime

However, it does not completely reject digital currencies. She definitely sees the place for this in the future, also at the ECB. She said the pandemic had pushed economies towards faster digital adoption. There could be a digital euro currency in about four years. This thesis recently received a boost from a ruling by the European Court of Justice on the restriction of cash.