The Czech National Bank (CNB) expresses doubts about using Bitcoin as part of its reserves, facing legal challenges and high volatility issues.
Kubicek's Views on Strategic Bitcoin Reserves
Jan Kubicek, a board member of the CNB, expressed skepticism regarding cryptocurrency. He is concerned about its legal status and potential difficulties in financial records and audits. Kubicek highlighted Bitcoin's high volatility, making it a risky choice for central bank reserves. Its unpredictable price changes pose significant challenges for institutions such as the CNB, which typically work with more stable assets in their reserves.
Bank Governor's Comments on Potential BTC Investment
Towards the end of January 2025, bank governor Ales Michl presented a plan for a $7.3 billion Bitcoin acquisition. He previously hinted at the potential move, mentioning interest in acquiring "a few Bitcoin" to diversify the nation's reserve assets. Despite skepticism from some corners, the central bank is focused on new asset classes for long-term stability.
Lack of Support for Strategic Crypto Reserve
A recent survey suggests many Americans do not support Donald Trump's idea for a strategic Bitcoin reserve. According to the poll, 51% opposed and 34% supported the proposed reserve. 15% of respondents were undecided. Meanwhile, the South Korean Central Bank stated that Bitcoin will not be considered for inclusion in its foreign exchange reserves for now, citing its extreme volatility and high transaction costs during market instability.
The situation with Bitcoin as a reserve asset at the Czech National Bank remains uncertain due to its high volatility and legal status questions. The future will show how central banks adapt to the opportunities and challenges of digital assets.
