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Germany’s central bank chief pushes for sovereign digital euro, still sees Bitcoin as ‘digital tulip’

Author: Content Editor
Germany’s central bank chief pushes for sovereign digital euro, still sees Bitcoin as ‘digital tulip’
Bundesbank President Joachim Nagel believes that the European Union should develop a state-controlled digital currency to protect against private sector dominance in global finance. Nagel dismissed Bitcoin as an asset class and speculative bubble, stating that central banks should remain skeptical about holding it as a reserve. Instead, he advocated for the development of a digital euro to ensure Europe's financial resilience and independence. Nagel also highlighted the potential risks of foreign payment systems being used as weapons in a digital environment. He emphasized that financial institutions and payment service providers would not be allowed to use personal and transaction-related data for commercial purposes without explicit user consent. The suggestion of using Bitcoin as a reserve asset for the central bank was shut down by European Central Bank President Christine Lagarde. The Czech National Bank is currently conducting a study on Bitcoin as a reserve asset, but the exposure is expected to stay below 1% of total reserves.

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