European Central Bank advisor discusses risks of governments holding Bitcoin reserves due to lack of economic necessity and potential for wealth redistribution.
Jürgen Schaaf, an advisor at the European Central Bank (ECB), criticizes the idea of governments creating Bitcoin reserves, citing its extreme volatility and lack of economic necessity. He argues that while it makes sense for governments to have reserves of energy resources like oil and gas, there is no real economic need for Bitcoin as it lacks economic utility. Schaaf believes that adding Bitcoin to central bank reserves would not stabilize the currency but instead promote speculation and unfair wealth redistribution. He points out that Bitcoin’s volatility, illegal uses, and susceptibility to manipulation make it unsuitable for central banks.
