Europe Without Bitcoin Reserves? CZ's Statement Sparks a Storm of Debate
While the head of the European Central Bank (ECB), Christine Lagarde, firmly rejects the idea of using Bitcoin in Europe's financial reserves, Binance founder Changpeng Zhao (CZ) directly challenges her, stating: "EU needs Bitcoin". This stance has ignited heated debates both within and beyond the crypto community.
ECB's Position: Liquidity, Security, and Stability Above All
During a press conference, Lagarde emphasized that reserve assets must be exclusively liquid, secure, and free from any suspicion of money laundering or other financial crimes. According to her, Bitcoin does not meet these strict criteria:
"I am convinced that Bitcoin will not be included in the reserves of any of the ECB General Council member central banks."
For ECB representatives, the stability and transparency of assets are top priorities, especially amid global economic instability and rising inflation expectations.
CZ's Statement: Time to Change the Rules of the Game
Contrary to the cautious stance of the ECB, Changpeng Zhao declared in a brief social media message that "EU needs Bitcoin". In his view, Bitcoin is capable of ensuring financial independence and serving as a reliable "hedge asset" in the face of increasing inflation expectations and geopolitical risks.
Crypto advocates argue that Bitcoin's decentralized nature, its cryptographic security, and the absence of central control make it one of the safest assets in modern times.
The European Context and Global Trends
It is not only the conflicting statements from Lagarde and CZ that have sparked interest in the issue of Bitcoin reserves. Several European central banks have already begun considering the possibility of diversifying their reserves with alternative assets. For example:
- The Central Bank of the Czech Republic is discussing the possibility of allocating up to 5% of its reserves (amounting to over $7 billion) to Bitcoin, although this move has met with criticism from some financial officials who fear the cryptocurrency's volatility.
- Other countries, such as Germany, Poland, and Slovenia, are also exploring the potential of using Bitcoin as an element in reserve diversification.
Furthermore, political figures such as Germany's former Finance Minister, along with leaders in the USA—where President Donald Trump has already taken steps toward establishing a national cryptocurrency reserve—are raising the issue of using digital assets as a "hedge" against the devaluation of traditional currencies.
Additional Facts and Expert Views
- Volatility as the main argument against it. Bitcoin critics point out that the asset's high volatility could negatively affect the stability of national reserves.
- Decentralization and security. Proponents note that over the years the network has not suffered any successful attacks, and blockchain technology guarantees a high level of data protection.
- A Global Movement Toward Digital Assets. The growing interest from institutional investors and the emergence of Bitcoin ETFs strengthen the cryptocurrency’s position as a potential component of a long-term financial strategy.
The disagreements between traditional financial institutions and crypto enthusiasts reflect a broader contradiction: in the digital age, old financial standards are clashing with new realities.
While the ECB remains firmly opposed to including Bitcoin in its reserves, figures like Changpeng Zhao continue to call for a rethinking of the role of cryptocurrency in the global financial system. The fate of Bitcoin as a component of state reserves remains an open question that will be debated in the coming months.