- ECB’s Lagarde has mentioned that BTC isn’t liquid, secure, and stuffed with crime to be thought of a reserve.
- However Bitwise’s Andre Dragosch has debunked these allegations.
The crypto group has criticized Christine Lagarde, the president of the European Central Financial institution, for her opposition to a Bitcoin[BTC] reserve amongst member international locations.
In a current presser, Lagarde stated,
“Reserves need to be liquid, safe and secure and never be affected by suspicion of cash laundering or prison exercise. Consequently, I’m assured that Bitcoin won’t enter the reserves of any of the central banks of the overall council.”
Nevertheless, the group shortly countered her argument, stating that Bitcoin meets all the standards she highlighted.
BTC meets the ECB’s reserve standards
Andre Dragosch, Head of Analysis at Bitwise Europe, famous that BTC is extra liquid than probably the most liquid conventional asset (S&P 500). He stated,
“Is Bitcoin liquid? SPDR S&P 500 ETF (SPY) – trades round 22 bn USD in quantity per day. Bitcoin simply had 54 bn USD in buying and selling quantity over the previous 24 hours.”
For security, miners safe BTC, probably the most decentralized community with no counterparty danger. Dragosch added that one would want upward of $20B to deprave BTC’s system, rendering it a comparatively safer choice.
As for prison exercise, crypto accounted for lower than 1% of crime-related circumstances, per the 2024 Chainalysis report. The analyst added,
“Solely 0.14% of all on-chain transactions are associated to illicit actions, together with cash laundering. Bitcoin is simply a fraction of that.”
Supply: Chainalysis
One other person, Daniel Sempere, echoed Dragosch’s sentiment, reiterating that the Bitcoin community secures $2T in wealth and has by no means been hacked.
It’s value noting that Lagarde’s remark was associated to the current Czech Republic’s move to diversify its nationwide reserve by including BTC.
Earlier within the week, the Czech’s Central Financial institution Governor, Ales Michl, reiterated the financial institution’s intention so as to add BTC to its reserves if accredited.
Whether or not Michl will again down on BTC after Lagarde’s warning stays to be seen. Within the meantime, Polymarket odds of one other nation adopting BTC briefly soared +70%.
Supply: Polymarket
