Czech Central Bank Officials Are “Skeptical” About Adding Bitcoin to Reserve Assets

Jan Kubicek, a member of the Czech National Bank (CNB) board, is "skeptical" about including Bitcoin in the bank's large reserve assets, mainly due to its legal uncertainty and the volatility of digital currencies. Earlier this year, CNB Governor Ales Michl proposed considering Bitcoin, and the bank has begun to analyze the possibility of expanding the asset categories in its reserve investment portfolio. However, CNB Vice Governor Eva Zamrazilova has stated that Bitcoin is not a suitable reserve asset.

In an interview on Tuesday, Kubicek said: "We will evaluate different categories of assets, and Bitcoin is just one of them. I am quite skeptical about Bitcoin." He pointed out that the legal status of Bitcoin is an issue, and holding Bitcoin directly would require the development of many new processes in accounting or auditing. He also mentioned that volatility is another concern, and assessing market price trends is also difficult. He said: "We cannot be sure whether the volatility of Bitcoin in the coming years will be similar to the patterns observed in the past decade, because I doubt that if more institutional investors accept Bitcoin as an investment asset, its performance will be different from what we have seen so far."

Kubicek stated that the bank's research on new asset categories may be completed by October, and this research may explore the possibility of holding international corporate bonds, as well as investing in more targeted stock indices (such as technology) and real estate investment funds.