European Leaders’ Reactions to Trump’s Bitcoin Position

European leaders have largely reacted passively to America’s recent proposal for a strategic Bitcoin reserve, having previously dismissed the idea of a Bitcoin reserve. Some suggest European nations should consider their own Bitcoin vaults.

Trump’s announcement may benefit the cryptocurrency space, reviving hopes after banning a “digital dollar” earlier this year. His invitation to industry figures for a White House summit marked a new approach.

ECB’s Lagarde on Bitcoin Reserve

Christine Lagarde, President of the European Central Bank (ECB), has publicly rejected the addition of Bitcoin to central bank reserves. In a recent press conference, she stated reserves must be liquid, secure, and devoid of associations with criminal activities. Despite her “good conversation” with the Czech National Bank governor Aleš Michl, she firmly believes Bitcoin won’t enter central reserves.

Czech Republic’s Michl plans to propose a Bitcoin test portfolio despite reservations. He believes studying Bitcoin may bolster financial management strategies. Meanwhile, Poland’s opposition candidate Sławomir Mentzen has vowed to create a Bitcoin reserve if elected.

Resistance from Old Europe

German central bank head Joachim Nagel criticized Bitcoin’s legitimacy as a currency. French officials echoed similar concerns regarding Trump’s deregulation approach, referring to potential risks for financial stability. The Swiss National Bank’s chairman also deemed Bitcoin unsuitable for reserves.

Russia’s Ambiguous Stance

In Russia, the government currently prioritizes gold and yuan for its reserves. However, future investments in cryptocurrencies aren’t entirely ruled out, aligning with the Ministry of Finance’s cautious approach. This ambivalence follows President Putin’s criticisms of the dollar’s stability and hints at Bitcoin’s potential.

Central Banks and Digital Currencies

Amid the rise of central bank digital currencies (CBDCs) in Russia, China, and Europe, Lagarde emphasized the urgency for a digital euro. Critics raise concerns about privacy and potential dystopian outcomes, advocating for Bitcoin reserves instead.