ECB President: 'Bitcoin will not enter the reserves of any of the central banks of the General Council'

Lagarde mentioned concerns over money laundering and other illicit financial activities as reasons for excluding bitcoin from central bank reserves. According to Fortune, cryptocurrencies operate on transparent blockchains where all transactions are publicly recorded, allowing law enforcement agencies to trace illicit activities. The U.S. Department of Justice has used blockchain records to identify suspects, freeze illicit funds, and recover billions in bitcoin linked to darknet markets and ransomware operations.

According to the Financial Times, the United States’ evolving crypto policies are drawing business away from Europe, as industry leaders perceive a more favorable environment under the current U.S. administration. Meanwhile, the European Union’s Markets in Crypto-Assets (MiCA) regulation introduced stricter compliance requirements on December 30, increasing costs for startups and discouraging new businesses from launching in the EU.

Christine Lagarde is a French lawyer and politician who has served as President of the European Central Bank since 2019. Before this role, she was France’s finance minister (2007–2011) and later Managing Director of the International Monetary Fund (2011–2019). She has a background in law and international finance, having worked at Baker & McKenzie.

According to their website, the European Central Bank is responsible for managing the euro and implementing EU economic and monetary policy with the primary goal of maintaining price stability to support economic growth and job creation. Established in 1998 and headquartered in Frankfurt, Germany, it sets interest rates, manages foreign currency reserves, supervises financial institutions, and oversees euro banknote production.