ECB Lagarde predicts no European Union country will add Bitcoin to its monetary reserves.

Lagarde spoke on Thursday, following the European Central Bank rate cut (read from the bottom up for the chronology):

• ECB may drop restrictive label on rate stance as soon as March – report
• European indices cheer ECB rate cut
• ECB sources: Policymakers expect a further cut in March followed by a deeper debate
• Lagarde Q&A: We have not had a discussion on whether it’s time to stop cutting
• ECB’s Lagarde: Indicators developing towards a sustained return to our inflation target
• ECB cuts key rates by 25 bps in January monetary policy decision, as expected

In her press conference Lagarde dismissed the idea that EU central banks would scoop up Bitcoin for reserves purposes:

• “I’m confident” that “Bitcoins will not enter the reserves of any of the central banks of the General Council” of the ECB
• “I think there is a view around the table of the Governing Council, and most likely the General Council as well, that reserves have to be liquid, that reserves have to be secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities,”

Lagarde’s comments come after the Czech National Bank governor aired thoughts of buying Bitcoin:

• could potentially represent 5% of its reserves
• the matter is “only at the stage of analysis and discussion”

Note that while the Czech Republic is in the EU, its not a member of the euro zone.

Note also the saying that ‘where there’s smoke, there’s fire’.

Bitcoin update … still pussyfooting around US$100K:

This article was written by Eamonn Sheridan at www.forexlive.com.