Jan Kubicek, a board member of the Czech National Bank (CNB), has expressed doubts regarding the potential inclusion of Bitcoin in the bank’s reserves. He raised concerns about the legal uncertainties and the inherent volatility associated with the cryptocurrency.
Earlier this year, CNB Governor Ales Michl proposed the idea of considering Bitcoin as part of the bank’s reserves. As a result, the bank has initiated an evaluation to explore expanding the range of assets in its portfolio.
In a recent interview, Kubicek emphasized that Bitcoin is just one of the assets being examined. However, he remains doubtful about its inclusion, citing legal issues and the challenges of incorporating Bitcoin into the bank’s accounting and auditing systems. He noted, “My position is rather sceptical about bitcoin.”
Volatility is another major concern for Kubicek, as he pointed out the difficulty in predicting Bitcoin’s future market behavior. He noted that, if more institutional investors begin adopting Bitcoin, its price fluctuations may differ from those observed in the past decade.
Kubicek indicated that the bank’s review of new asset classes could be concluded by October. He also mentioned the possibility of exploring international corporate bonds, targeted equity indices, especially in technology, and property investment funds as alternatives.
While CNB Vice Governor Eva Zamrazilova has dismissed Bitcoin as a suitable reserve asset, European Central Bank President Christine Lagarde has similarly stated that Bitcoin is not appropriate for central bank reserves.
Currently, the Czech National Bank holds reserves worth 142.8 billion euros ($155.75 billion), about 45% of the nation’s GDP. In recent years, the bank has diversified its reserves, with a growing portion of the portfolio now allocated to gold and equities.
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