Jan Kubíček, a member of the Czech National Bank’s board, has expressed skepticism regarding Bitcoin’s viability as a reserve asset. He highlighted significant concerns about its legal ambiguities and unpredictable price fluctuations, raising questions about the integration of the digital currency into the bank’s reserves.
Kubíček acknowledged that Bitcoin is currently being assessed within the context of the CNB’s strategy to diversify its reserves. However, he voiced apprehension about its legal classification, explaining that embracing Bitcoin would necessitate substantial changes to the bank’s accounting and auditing frameworks.
Experts in the banking sector further noted that including Bitcoin in the reserve system poses considerable challenges in the absence of clear regulatory guidance.
Market volatility is also a critical issue. Kubíček mentioned that Bitcoin’s price variations, which have ranged from $77,186 to $109,021 this year, complicate risk evaluations.
He suggested that if more institutional investors begin to adopt Bitcoin, its market behavior might evolve, complicating predictions about future volatility.
He emphasized:
“We cannot guarantee that Bitcoin’s volatility in the upcoming years will reflect the trends seen in the past decade because I suspect that with increased institutional acceptance, its behavior might change significantly from what we have observed to date.”
Kubíček’s views contrast with those of CNB Governor Ales Michl, who advocates for adding Bitcoin to the bank’s reserves.
Earlier this year, Michl suggested that Bitcoin could serve as a strategic asset for diversification. If sanctioned, the CNB might invest up to 5% of its $146.13 billion reserves into Bitcoin, equating to approximately $7.3 billion—substantially more than its current gold holdings of $4.3 million.
Michl has also argued that central banks should investigate Bitcoin’s possibilities rather than dismiss it entirely, maintaining that BTC and its foundational technology could bolster, rather than undermine, financial stability.
Meanwhile, Kubíček confirmed that the CNB is continuing its examination of Bitcoin and other emerging asset classes. The results, anticipated by October, will likely dictate whether Bitcoin secures a role in the Czech Republic’s reserve strategy or remains an unlikely contender.