'Huge': Adam Back Reacts to First EU Country Buying Bitcoin

Blockstream CEO Adam Back has reacted to Luxembourg becoming the very first eurozone country to invest in Bitcoin, describing the development as “huge.”

Earlier today, Luxembourg Times reported that the sovereign wealth fund (FSIL) of the uber-rich European country had decided to invest 1% of its total assets in Bitcoin as well as other cryptocurrencies.

The fund, which is overseen by the Luxembourg government, gets funded with revenues from fuel taxes, excises, parts of VAT, and so on.

As of late June, the fund had a total of €764 million worth of assets.

The Bitcoin investment comes after the fund of the tiny EU nation recently opened the door to more diversification.

Even though 1% is a relatively small percentage, Back, who is famous for being cited in the Bitcoin white paper, claims that the BTC price will eventually “fix” that.

Watershed moment?

The small investment is unlikely to move the price of Bitcoin, but it shows that crypto is now a maturing asset that can be viewed as a viable investment by nation-states.

State funds, such as FSIL, tend to be rather conservative when it comes to their investment choices. The recent investment could further boost confidence in Bitcoin since Luxembourg is now the first eurozone country to embrace it.

Finland, for instance, also holds BTC, but these are forfeited coins from criminal proceedings.

Lagarde remains a Bitcoin skeptic

In the meantime, Christine Lagarde, the president of the European Central Bank (ECB), remains a staunch Bitcoin skeptic, recently stated that the leading cryptocurrency has no underlying value.

In January, as reported by U.Today, Lagarde stated that Bitcoin would not enter the reserves of any of the central banks of the 27 member states.