Blockstream’s CEO, Adam Back, has expressed enthusiasm over Luxembourg’s pioneering move as the first eurozone nation to invest in Bitcoin, calling it a “significant” step.
Earlier today, the Luxembourg Times revealed that the country’s sovereign wealth fund (FSIL) decided to allocate 1% of its total assets into Bitcoin and other digital currencies.
This fund is managed by the government of Luxembourg and is financed through various sources such as fuel taxes, excise duties, and portions of VAT revenues.
By late June, FSIL had amassed assets totaling €764 million. The decision to invest in Bitcoin follows recent efforts by this small EU country to broaden its investment strategy.
Although a 1% allocation might seem modest, Back—who was mentioned in the original Bitcoin white paper—believes that BTC’s value will eventually make this percentage more impactful.
A Turning Point?
The relatively minor investment may not influence Bitcoin’s market price significantly but indicates that cryptocurrencies are gaining recognition as legitimate investments at a national level.
Sovereign funds like FSIL typically adopt conservative approaches towards investments. This latest move could enhance trust in cryptocurrencies since Luxembourg leads within the eurozone by adopting them.
While Finland also possesses BTC holdings from criminal seizures rather than direct investments like those made by Luxembourg.
Lagarde Holds Firm on Her Skepticism
Meanwhile Christine Lagarde—the European Central Bank (ECB) president—remains skeptical about Bitcoin’s potential value or utility recently asserting it lacks intrinsic worth altogether.
This past January—as covered by U.Today—Lagarde reiterated her stance against including Bitcoins among central bank reserves across any member states within Europe’s union comprising twenty-seven countries overall .