#cryptonews
Germany’s Bundesbank President, Joachim Nagel, stressed during a recent event that introducing a digital euro is crucial for preserving Europe’s financial independence.
Speaking at an OMFIF event at the London School of Economics on February 12, Nagel highlighted the role of a digital euro in maintaining financial sovereignty.
Nagel reiterated that the introduction of a digital euro is key to maintaining financial autonomy, ensuring that Europe remains resilient against private sector dominance in global finance.
He described it as a sovereign instrument that would allow the public to conduct transactions using a virtual form of central bank money, similar to cash.
He described the cryptocurrency as “digital tulips,” drawing a parallel to the speculative tulip mania of the 17th century. Nagel rejected the idea of central banks holding Bitcoin. He argued that such assets lack the liquidity and transparency necessary for official reserves.
While advocating for a digital euro, Nagel maintained a critical stance on Bitcoin.
Critics, including Karim Al-Mansour, CEO of Amanah Capital, argue that central banks are not hedge funds and should prioritize liquidity, stability, and capital preservation over speculative returns.
In an interview with the Financial Times, Michl suggested that the CNB could consider adding Bitcoin to its reserves. However, this proposal has met with skepticism.
His stance contrasts with that of Aleš Michl, Governor of the Czech National Bank (CNB), who has proposed exploring Bitcoin as part of reserve diversification.
Stefan Berger, who was leading efforts on the digital euro, resigned to counter claims that Germany’s center-right was stalling the project.
As discussions on the digital euro progress, leadership changes have also emerged within the European Parliament.
His replacement is expected to be announced soon, with Spain’s Fernando Navarrete Rojas among the potential candidates.
The digital euro conversation cuts to the core of Europe’s pursuit of autonomy in an era of fast-changing technology and global jockeying.
He stated that a non-German leader should take over to ensure transparency in the decision-making process.