ECB Adviser Deems Bitcoin Unsuitable for National Reserves

Jurgen Schaaf, an adviser to the ECB, believes that Bitcoin is not suitable for national government reserves. He made this statement in an interview with Cointelegraph.

According to the expert, the first cryptocurrency is an unreliable instrument due to its high volatility, lack of real economic value, and susceptibility to manipulation.

“Bitcoin will not strengthen currency stability but will only increase speculation and wealth redistribution,” noted Schaaf.

The adviser argues that strategic reserves, such as raw materials or energy resources, have specific economic benefits, whereas cryptocurrencies do not offer such advantages.

Schaaf also dismissed the scenario where central banks might add other digital assets to their reserves. He emphasized that an alternative in the form of a diversified cryptocurrency portfolio is an even riskier decision.

The ECB representative’s statements came amid a wave of volatility in the crypto market. Recently, the price neared $86,000, and the daily outflow from BTC-ETF exceeded $1 billion.

Earlier, on February 22, authorities in Montana, North Dakota, and Wyoming refused to support local bills on Bitcoin reserves.

Previously, VanEck estimated that if such initiatives were adopted, there would be an additional demand for the first cryptocurrency amounting to $23.5 billion.