The debate over Bitcoin’s role in the Czech National Bank’s (CNB) reserves continues as a senior official raised concerns about its legal status and volatility. While the bank is actively exploring new asset classes, board member Jan Kubicek has expressed skepticism about Bitcoin’s suitability for inclusion.
Skepticism Amid Asset Class Expansion
Speaking on March 18, Kubicek acknowledged that the CNB is assessing various asset classes but remains unconvinced about Bitcoin’s viability. He cited legal uncertainties and the complexities involved in accounting and auditing Bitcoin holdings as key concerns.
“We will assess different classes of assets. Bitcoin is just one of them. My position is rather sceptical about Bitcoin,” Kubicek stated.
Kubicek also noted that Bitcoin’s volatility presents an additional challenge. He emphasized that while past price patterns may provide some insights, institutional adoption could significantly alter Bitcoin’s market behavior in the future.
“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.”
CNB’s Study on Alternative Asset Classes
The CNB is conducting a broader study on expanding its asset classes, with findings expected by October. The study includes potential investments in international corporate bonds, equity indices—such as technology stocks—and property investment funds.
The discussion around Bitcoin as a reserve asset gained traction after CNB Governor Ales Michl proposed the idea in January. His comments sparked interest within the crypto community but were met with resistance from policymakers. European Central Bank President Christine Lagarde responded to the proposal, stating that reserves must be “liquid, secure, and safe,” implying that Bitcoin may not meet these criteria.
Looking Ahead
While the CNB continues its study, skepticism from board members like Kubicek suggests that Bitcoin’s inclusion in national reserves remains uncertain. The final decision will likely depend on the bank’s assessment of risk, regulatory clarity, and Bitcoin’s evolving market dynamics.
For now, Bitcoin’s place in the Czech central bank’s portfolio remains a topic of debate rather than an imminent reality.
