Main main bank Main main main digital euro, still see Bitcoin as ‘Digital Tulip’

President Bundesbank Joachim Nagel says that the European Union needs a digital currency with state control as protection from private sector dominance in global finance.

Joachim Nagel, Head of Central Bank Germany, does not change his mind to crypto, pushing for a digital euro that will help Europe remain financially independent.

Speaking at Omfif’s event at the London School of Economics, Nagel accentuated that the European Central Bank should remain cautious about monetary policy, rejecting Bitcoin (Btc) as “more like a property class” and describing it as “contrary to transparent”. He also called a cryptocurrency with a trillion cap on the market of three trillion of speculative bubbles, comparing it with “digital tulip”.

Commenting on the calls of some central banks to start holding Bitcoin as a reservation, Nagel said the central banks remain skeptical.

“This is not something that central banks should look at. This is not the liquid form of something you want on the balance sheet. We should be very careful here.”

Joachim Nagel

Instead, Nagel argued that the digital euro would help the Europe’s position against the dominance of the private sector, as the digital currencies of the Central Bank will “play a role in the future resistance (Europe).” Bundesbank chief also warned that foreign pay systems could “use in a digital environment as a form of weapons”, but did not work out.

Speaking at the Capital Market Conference of the DZ Bank in 2024. years, Nagel accentuated In order for financial institutions and other providers for payment services for processing digital euro payments “would not be allowed to use data related to personal and transactions for commercial purposes.” Although noted that this restriction only would raise only if users were explicitly approved consent.

Europe is divided over bitcoin as a spare property

At the end of January this year Czech Governor of Central Bank Ales Michl propose Using bitcoins as a reserve for the central bank. The idea had some crypt’s people excited, but it didn’t sit well all the policy makers. The president of the European Central Bank of Christine Lagarda closed it, saying that “reserves must be fluent, that the reserves must be sure they have to be safe.”

After the Michelian proposal, the Czech Republic Board requested the Studio to view the Bitcoin as spare means. But now, sources tell The study could take several months to end. Even if it supports the purchase of bitcoin, CNB exposure is likely to stay under 1% of the total reserves, away crying from originally suggested 5%.