Is Bitcoin Unnecessary for the Economy?
🚨 Jürgen Schaaf, advisor to the European Central Bank (ECB), continues to emphasize the ECB's negative stance on Bitcoin, even as the U.S. considers creating a strategic reserve for BTC.
📉 Speaking amid Bitcoin dropping below $88,000 during a major liquidation wave in the market, Schaaf stated that:
🔹 Bitcoin does not have a "real economic demand" and has no significant role in the global economy.
🔹 National reserves of Bitcoin are a risky idea, as BTC lacks stability and does not provide practical economic benefits.
💬 Schaaf's views are entirely consistent with previous statements by President #ECB Christine Lagarde, who stated in January 2025 that Bitcoin would never appear in the reserves of European central banks.
Bitcoin Reserves: Promoting Speculation, Not Stability
📌 Schaaf emphasizes that the ECB should not add Bitcoin to the national reserves, as conventional strategic reserves – such as oil or gas – can help stabilize markets during crises.
⚠ $BTC , according to him, does not have equivalent value in stabilizing the economy, but instead:
❌ Increases financial speculation
❌ Creates unequal asset distribution
❌ Does not help stabilize the Euro or other currencies
📢 Schaaf argues that sovereign wealth funds usually invest in sectors with sustainable returns, rather than pouring money into a highly volatile asset like Bitcoin.
📉 He also pointed out that the top priority for the U.S. and Europe right now is to reduce public debt, not to seek speculative investments like Bitcoin.
Cryptocurrency in Central Bank Reserves? Impossible!
🚫 Not only opposing Bitcoin, Schaaf also completely rejects the idea of central banks holding multiple types of cryptocurrencies.
📌 According to him, adding more digital assets only increases risk, heightens volatility, and exposes central banks to assets with no clear economic value.
💬 He affirmed:
"Whether it's Bitcoin alone or a basket of digital assets, the risks are still very high, and there is no solid economic reason to do this."
⚠ Schaaf's statement comes amid significant volatility in the cryptocurrency market, with total liquidations reaching $1.5 billion in just 24 hours.
📉 Bitcoin dropped 7% on February 25, hitting its lowest level since November 2024. This is a significant shock after BTC once peaked above $106,000 in mid-December last year.
Can Bitcoin Help Countries Reduce Debt?
📊 While the ECB strongly opposes it, some experts and investors believe that Bitcoin could help governments address public debt issues.
📌 The asset management company #VanEck once estimated that if the U.S. reserves 1 million BTC, they could reduce public debt by 35% within 24 years.
📢 Senator Cynthia Lummis is also one of those advocating for the U.S. to accumulate Bitcoin as a financial tool to deal with the enormous debt of over $35 trillion.
⚠ However, many remain skeptical about the feasibility of this plan. Will Bitcoin truly help the U.S. and other countries manage national finances, or is it just a speculative dream?
Conclusion: The Controversy Is Still Ongoing
🔹 The ECB still maintains a "no Bitcoin" stance in the national reserves.
🔹 Meanwhile, the U.S. and some politicians are still keeping the door open to leveraging Bitcoin as an economic tool.
⏳ Will the ECB's stance change if Bitcoin continues to develop, or will they maintain a hardline attitude towards cryptocurrency? Let's wait and see the next developments! 🚀
