- 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 nations.
In a latest presser, Lagarde acknowledged,
“Reserves have to be liquid, secure and safe and not be plagued by suspicion of money laundering or criminal activity. As a result, I’m confident that Bitcoin will not enter the reserves of any of the central banks of the general council.”
Nonetheless, the group rapidly 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 essentially the most liquid conventional asset (S&P 500). He acknowledged,
“Is Bitcoin liquid? SPDR S&P 500 ETF (SPY) – trades around 22 bn USD in volume per day. Bitcoin just had 54 bn USD in trading volume over the past 24 hours.”
For security, miners safe BTC, essentially 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 felony exercise, crypto accounted for lower than 1% of crime-related instances, per the 2024 Chainalysis report. The analyst added,
“Only 0.14% of all on-chain transactions are related to illicit activities, including money laundering. Bitcoin is only 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 price noting that Lagarde’s remark was associated to the latest Czech Republic’s transfer 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
