Czech National Bank board member Jan Kubicek expressed skepticism over including Bitcoin in the bank’s reserves, warning about possible legal issues and volatility.
Jan Kubicek's Skepticism About Bitcoin
Earlier this year, CNB Governor Aleš Michl proposed exploring Bitcoin as part of a broader analysis into diversifying the bank’s reserve assets. However, Jan Kubicek believes the focus should be on international corporate bonds and targeted equity indices. In an interview, Kubicek noted they would assess various asset classes, with Bitcoin being just one of them. He expressed his skeptical stance. Kubicek listed some of the problems with Bitcoin, including its legal status and volatility. He explained that Bitcoin's legal status and direct ownership would require the creation of numerous new procedures in accounting and auditing.
Criticism from High-Ranking Officials
Kubicek also pointed out concerns over Bitcoin's volatility and the challenge in evaluating price changes in the market. In addition to Kubicek, other high-ranking officials criticized the inclusion of Bitcoin in the reserves. CNB Vice Governor Eva Zamrazilova said that Bitcoin is not a good reserve asset. Additionally, European Central Bank head Christine Lagarde stated it is unsuitable for use in European central banks.
Ongoing Exploration of New Asset Classes
Despite the criticism, the Czech National Bank continues to explore the possibility of including new asset classes. In a statement released on January 30, the bank mentioned it is considering diversification and return through the inclusion of other asset classes in reserves, including Bitcoin. The Czech bank might become the first known central bank holding Bitcoin.
The Czech National Bank continues to focus on diversifying its reserves, despite skepticism over Bitcoin's inclusion. The question remains open, given the legal and volatility issues.
