Czech Central Banker Skeptical of Bitcoin's Place in Reserves
by Kevin Helms
A Czech National Bank board member has raised doubts on bitcoin as a reserve asset, citing legal uncertainty and volatility risks, even as it explores new asset classes.
Czech Central Banker Skeptical of Bitcoin's Place in Reserves
Bitcoin Faces Pushback From Czech Central Bankers
Czech National Bank board member Jan Kubicek has expressed reservations about incorporating bitcoin into the central bank’s reserves, citing its legal uncertainties and price fluctuations, Reuters reported. His comments follow Governor Ales Michl’s proposal to include BTC in the central bank’s asset review.
During an interview on Tuesday, Kubicek discussed the bank’s approach: “We will assess different classes of assets. bitcoin is just one of them.” He clarified his stance, stating:
My position is rather skeptical about bitcoin.
A comprehensive evaluation of alternative asset classes is set to be completed by October.
Bitcoin’s ambiguous legal classification, Kubicek explained, could create challenges in accounting and auditing procedures. He also underscored the asset’s unpredictable value shifts, warning that price volatility remains a key concern. “We cannot be certain that bitcoin’s volatility in the coming years will mirror the patterns observed over the past decade because I suspect that, if more institutional investors accept bitcoin as an investment asset, it will start to behave differently from what we have seen so far,” Kubicek stated. Beyond BTC the bank is also exploring the possibility of investing in international corporate bonds, select equity indices—particularly those focused on technology—and property investment funds.
Skepticism regarding bitcoin’s suitability for central bank reserves has been echoed by other policymakers. Czech National Bank Vice Governor Eva Zamrazilova has dismissed BTC as an appropriate reserve asset, stating: “Bitcoin is not a suitable asset for reserves.” European Central Bank (ECB) President Christine Lagarde has similarly rejected the idea, emphasizing: “Europe’s central banks are not the place for it.”
Governor Michl, despite acknowledging concerns about cryptocurrency investments, has pushed for further research into bitcoin’s potential as a reserve asset. He has suggested creating a test portfolio for the cryptocurrency while differentiating it from other digital assets. “Bitcoin, however, is a different story. It should not be lumped together with other crypto assets. We central bankers should study it and explore the technology it is built on,” Michl stated. The Bank Board has authorized an analysis of new asset classes, including bitcoin, while clarifying that no immediate investment commitments will follow. Meanwhile, the Czech National Bank has expanded its reserve diversification efforts, holding 142.8 billion euros ($155.75 billion), equivalent to approximately 45% of the country’s gross domestic product. The bank has progressively increased its gold reserves and allocated more funds to equity investments.
In the United States, President Donald Trump has signed an executive order to establish a Strategic Bitcoin Reserve, positioning bitcoin as a digital alternative to gold. Additionally, various U.S. states are evaluating legislation to introduce their own BTC reserves.
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