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The president of the European Central Bank (ECB), Christine Lagarde, has clarified whether central banks will start holding bitcoin now that a growing number of companies, like Tesla, are embracing the cryptocurrency. Lagarde remains skeptical about bitcoin, having recently said it “has conducted some funny business.”

Following Elon Musk’s Tesla investing $1.5 billion in bitcoin, the president of the European Central Bank (ECB), Christine Lagarde, has clarified whether central banks will hold bitcoin.

During a conference call hosted by The Economist Wednesday, Lagarde said that she did not consider bitcoin to be a real currency, emphasizing that central banks won’t be holding it as a reserve currency. She was quoted by Business Insider as saying:

It’s very unlikely. I would say it’s out of the question.

Lagarde recently called on all countries, particularly the G7 or the G20 nations, to impose more regulations on bitcoin. She said bitcoin was “a highly speculative asset, which has conducted some funny business and some interesting and totally reprehensible money laundering activity.” Many people soon pointed out that she was wrong and most illicit activities are conducted in fiat currencies.

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Despite being skeptical of cryptocurrencies, like bitcoin, the president of the ECB noted that the coronavirus pandemic has pushed economies toward faster digital adoption, and the digital euro may be ready within four years.

Do you think central banks will eventually hold bitcoin? Let us know in the comments section below.

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