ECB adviser dismisses Bitcoin reserves, calls it a risky and speculative asset

European Central Bank (ECB) adviser Jürgen Schaaf rejected the idea of Bitcoin as a strategic reserve asset, citing its volatility, lack of economic necessity and susceptibility to manipulation, according to Cointelegraph. Schaaf argued that unlike essential reserves like oil or raw materials, Bitcoin has no fundamental economic use and would fuel speculation rather than stabilize economies. He also dismissed the possibility of central banks holding diversified crypto reserves, stating that multiple digital assets would only increase risk and volatility. His comments come as Bitcoin drops below $88,000, amid a market-wide sell-off and $1.5 billion in crypto liquidations over the past 24 hours.