Bundesbank president Jochim Nagel says that the European Union requires state-controlled digital currency as protection against private sector dominance in global finance.
Jochim Nagel, the head of the Central Bank of Germany, is not changing his mind on Crypto, pushing for a digital euro to help Europe stay financially independent.
Speaking at an Omfif event at London School of Economics, Nagel Stressed on The European Central Bank should be cautious about monetary policy, dismissing bitcoin (BTC) as “more like an asset class” and described it as “opposite of transparent”. He also compared The Cryptocurrency to the $ 2 trillion market cap with a speculative bubble, comparing it to “Digital Tulip”.
Commenting on some central banks’ calls to start catching bitcoin as a reserve, Nagel said that central banks should be suspicious.
“This is not something that central banks should look. This is not a liquid form of anything you want on the balance sheet. We should be very cautious here. ,
Jochim Nagal
Instead, Nagel argued that a digital euro would help Europe stand against private sector dominance, as the central bank digital currencies “will play a role in future flexibility. [of Europe]”The Bundesbank chief also warned that foreign payment systems can” be used in a digital environment as a weapon “, but did not explain the matter in detail.
Speaking at the DZ Bank Capital Market Conference in 2024, Nagel stressed that financial institutions and other payment service providers process Digital Euro Payment “It will not be allowed to use individual and transactions-related data for commercial purposes. . ” He said that however, this ban would be lifted only when users are clearly agreed.
Europe divided bitcoin as reserved assets
Later this year, Czech Central Bank Governor Els Mitchell suggested the use of bitcoin as a reserved property for the Central Bank. This idea encouraged some crypto people, but it did not sit well with all policy makers. The European Central Bank President Christine Lagard closed it, saying that “the store has to be liquid, that the store would have to be safe, that they have to be safe.”
Following Mitchell’s proposal, the Board of Czech National Bank asked Bitcoin to look as a reserve property. But now, sources say that the study may take months to finish. And even if it supports the purchase of bitcoin, the exposure of CNB will probably be less than 1% of the total reserves, initially the suggested 5% far away.
