CZ Bitcoin invites the European Union reserves, and the European Central Bank fears about volatility
Changpeng Zhao (CZ), former Binance CEO, recently commented on the X job stating that “the European Union needs Bitcoin”, which means that he is trying to pay Bitcoin (BTC) integration in reserves from the Central Bank of the European Union, despite opposition from the bank European Central (ECB).
According to CZ, Reserve Bitcoin Reserve can help protect European Union funds from inflation because its value is not related to traditional currencies or assets and can provide a new way to diversify its investments, which may reduce risks and increase returns. By integrating BTC into the central bank reserves, this step can increase the value and legitimacy of bitcoin.
European Central Bank concerns about bitcoin reserves
On the other hand, the European Central Bank of Kristin Lagarde is still skeptical in BTC in the Central Bank reserves. The main concerns raised by the bank’s representative were more than BTC fluctuations that could lead to significant price transformations and investor losses, and their association with illegal criminal activities such as money laundering, terrorist financing and lack of safety and security.
Moreover, the European Central Bank is also concerned about the organizational uncertainty that comes with encrypted currencies, which makes it difficult to manage risks.
Tension between traditional currencies and encrypted currencies
The current debate highlights the tension that is feeling between traditional financial systems and the rapid world of cryptocurrencies. A society that supports BTC notes that it is a forward approach to asset management that will provide much better returns than traditional assets.
Ultimately, the BTC’s investment decision depends on careful consideration of the pros and cons. It is necessary for organizers and industrial leaders to have an open and enlightened discussion about the future of digital assets in the European Union.
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