🇨🇿 Czech Central Bank Questions Bitcoin as Reserve Asset
🗣 A board member of the Czech National Bank, Jan Kubicek, has expressed skepticism about the inclusion of bitcoin in the bank's reserves due to legal uncertainties and volatility risks. This comes after Governor Ales Michl proposed a review of the bank's assets, including the possibility of incorporating BTC.
🗓 In an interview, Kubicek stated,
We will assess different classes of assets. Bitcoin is just one of them.
He emphasized his cautious stance on bitcoin, saying,
My position is rather skeptical about bitcoin.
The bank plans to complete a thorough evaluation of alternative asset classes by October.
⚖️ Kubicek pointed out that bitcoin's ambiguous legal status could complicate accounting and auditing processes. He also highlighted the asset's unpredictable value fluctuations, warning that price volatility remains a significant concern. He remarked,
We cannot be certain that bitcoin’s volatility in the coming years will mirror the patterns observed over the past decade...
📊 In addition to BTC, the bank is considering investments in international corporate bonds, select equity indices—especially those focused on technology—and property investment funds.
🙅♀️ Other policymakers have also expressed doubts about bitcoin's suitability as a reserve asset. Czech National Bank Vice Governor Eva Zamrazilova stated,
Bitcoin is not a suitable asset for reserves.
Similarly, European Central Bank (ECB) President Christine Lagarde emphasized,
Europe’s central banks are not the place for it.
🔍 Despite these concerns, Governor Michl has advocated for further research into bitcoin's potential as a reserve asset. He suggested creating a test portfolio for the cryptocurrency while distinguishing it from other digital assets. He stated,
Bitcoin, however, is a different story... We central bankers should study it and explore the technology it is built on.
📈 The Czech National Bank has expanded its reserve diversification efforts, holding 142.8 billion euros (approximately $155.75 billion), which is about 45% of the country's gross domestic product. The bank has been increasing its gold reserves and allocating more funds to equity investments.
🇺🇸 In contrast, 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 considering legislation to introduce their own BTC reserves.
