European central banks could start accumulating Bitcoin in 2025, according to blockchain expert Fiorenzo Manganiello.
The prediction follows the rollout of the EU’s Markets in Crypto-Assets regulation, which aims to stabilize the crypto market by introducing clear legal frameworks.
Manganiello, co-founder of LIAN Group and a professor at Geneva Business School, argues that MiCA’s regulatory clarity will encourage institutional investors to enter the market, reducing volatility and legitimizing Bitcoin (BTC) as a financial asset, according to a note shared with crypto.news.
He believes this shift could extend to central banks, which may begin holding Bitcoin as a hedge against traditional market instability.
“Frankly, Bitcoin is becoming too dominant to ignore, and this year, I think we’ll see some European central banks begin to build their reserves of the currency in a bid to diversify their holdings and strengthen their defences against traditional market volatility. There’s no doubt that the MiCA rules will breathe new life into the European crypto scene. Even the most traditional financial institutions, such as central banks, will be ushered on board.”
Fiorenzo Manganiello
MiCA’s affect
The European Union introduced the Markets in Crypto-Assets framework at the end of 2024, establishing a cohesive regulatory framework for the crypto industry across its member states.
This initiative began on April 20, 2023, when the EU Parliament passed MiCA to address persistent challenges in the rapidly evolving crypto sector, such as fraud, market volatility, and inadequate investor protections.
Before MiCA, crypto companies navigated a complex landscape of varying national regulations. While some nations fostered innovation, others imposed significant barriers. MiCA aims to replace this fragmented approach with a unified set of rules for all 27 EU countries.
“As MiCA reassures traditional investors, we’ll see not only institutions but even central banks considering Bitcoin,” Manganiello said.
If European central banks follow through, it would signal a major shift in Bitcoin’s role within the global financial system.