Why the EU Is Ignoring Bitcoin Reserves

The U.S. Bitcoin reserve is now a reality. On March 6, 2025, President Donald Trump’s administration formally announced the initiative, setting the stage for a government-backed Bitcoin stockpile. The reserve will be filled through seized assets and potential off-budget sources, reinforcing Bitcoin’s role in the nation’s financial strategy.

In contrast, Europe remains cautious. Red tape, bureaucratic inertia, and concerns over regulatory compliance have kept EU leaders from following suit. Despite growing institutional interest, the political landscape in Europe remains far less receptive to state-level Bitcoin adoption.

For Anastasija Plotnikova, CEO of Fideum, the real issue isn't whether governments should hold Bitcoin—it’s how they go about it. A poorly designed implementation could trigger unintended consequences across both traditional finance and crypto markets.

Usually there is a very clear legislative or executive process in adding different assets to the national treasuries, and in many cases, it is not an active voter or central bank support to push this through,

Plotnikova remarked.

Should Bitcoin Be a National Reserve Asset?

Advocates of a Bitcoin reserve view BTC’s scarcity and decentralization as a way to mitigate inflationary pressures and diversify national reserves. As geopolitical tensions rise and fiat currencies face potential devaluation, Bitcoin’s resilience over time has convinced some that it could act as a financial safe haven.

Related: Crypto Voices on X: Reactions to the US Bitcoin Reserve and Crypto Summit

Skeptics warn that Bitcoin’s price swings make it a dangerous choice for a national reserve. If the market experiences a sudden downturn, the impact on government-held BTC could destabilize liquidity, leaving the economy vulnerable.

Unlike gold or treasury bonds, which have historically served as safe-haven assets, Bitcoin is more comparable to speculative instruments like equities or derivatives. Critics argue that while BTC offers potential upside, its instability makes it a poor choice for government-backed financial security.

Europe’s Approach to Bitcoin: Conservative or Strategic?

The U.S. is moving to integrate Bitcoin into government reserves, but Europe remains hesitant, focusing instead on the digital euro. Officials argue that a government-issued digital currency offers more stability than volatile crypto assets, but critics worry that the EU’s reluctance to adopt Bitcoin could leave it behind in the global financial race.

Despite skepticism, the European Central Bank (ECB) is pushing forward. Christine Lagarde promises the digital euro will maintain privacy protections, offer instant transactions, and coexist with cash-based payments. The question remains: Is Europe playing it safe or missing a golden opportunity?

Check this out: EU regulators support a reasonable control of the digital euro

With the digital finance revolution underway, Europe is prioritizing regulated digital currencies over the uncertainty of Bitcoin reserves. The complexities of launching a digital euro demand a structured approach, and EU policymakers prefer controlled innovation over speculative adoption. In this context, Europe’s decision to favor a government-backed alternative reflects its commitment to financial security in an evolving economic landscape.

Bitcoin Reserves: A U.S. Initiative That Europe Won’t Copy—For Now

Washington’s move to incorporate Bitcoin into national reserves was expected to set a global precedent, particularly for European economies. Instead, the reaction has been one of caution rather than enthusiasm. While the U.S. is testing the waters, most governments in the EU and beyond remain reluctant to treat a volatile digital asset as part of their official holdings.

Read on: No Bitcoin Reserves for Japan: Here’s What the PM Said

Yet, the shift toward decentralized financial models is already underway. Even if European nations delay Bitcoin adoption, the broader theme of economic independence and blockchain integration is becoming increasingly relevant. Whether through central bank digital currencies (CBDCs) or strategic crypto holdings, the conversation isn’t over—it’s just beginning.