Against Trump plan

ECB chief rejects Bitcoin as a currency reserve

Although ECB head Christine Lagarde is working on a digital euro, bitcoins as a currency reserve are out of the question for the Frenchwoman.(Bild: APA/dpa/Arne Dedert)

While the US government under President Donald Trump is working on plans for a digital currency reserve, the European Central Bank is somewhat more cautious on this issue. 

Currency reserves must be secure, liquid and protected, ECB head Christine Lagarde said at a press conference on Thursday. "They should also not be plagued by suspicions of money laundering or other criminal activities," she added with regard to cryptocurrencies such as Bitcoin.

US President Donald Trump is a fan of Bitcoin.(Bild: AP/Mark Humphrey)

Lagarde does not assume that bitcoins will end up in the reserves of the central banks of the euro countries. The declared crypto fan Trump, however, has ordered the formation of a working group for digital assets. It is to examine by July whether the US government should create a strategic Bitcoin reserve.

Supporters in Germany
In Germany, for example, FDP leader Christian Lindner is in favor of such a reserve. "Crypto assets now account for a significant proportion of global wealth growth," said the former finance minister. "In the USA, the Federal Reserve is even considering including them in its reserve. Frankfurt should also look into this," Lindner continued. Germany and Europe should not allow themselves to be left behind here again.