Hungary's Central Bank announced it will not acquire Bitcoin for its reserves, emphasizing the country's conservative approach to cryptocurrencies.
Bank's Stance on Cryptocurrency
Hungary's Central Bank, led by Deputy Governor Gábor Kurali, confirmed its position on cryptocurrency. The bank maintains a fiat-focused reserve strategy, excluding any crypto assets. Kurali stated that the reserve strategy does not support cryptocurrencies, aligning with its traditional policies. He noted, 'The central bank is evaluating its international reserve strategy and excludes the possibility of including any crypto assets.' — Gábor Kurali.
Market Impact and EU Practices
The announcement had no significant impact on the cryptocurrency markets, particularly Bitcoin. There were no measurable market reactions or asset flows linked to the bank's decision. This decision reinforces existing fiat-oriented practices among European central banks, mirroring past declarations by institutions such as the ECB. It highlights security and compliance concerns surrounding cryptocurrencies within regulatory frameworks.
Future Prospects
Despite curiosity, there remains no indication of changes to Hungary’s fiscal policies to integrate cryptocurrency assets. The central bank continues to focus on traditional asset management strategies. Historical trends show EU central banks favoring a restricted approach to crypto, with few exceptions like the Czech National Bank’s exploratory remarks. Hungary’s stance supports this pattern, minimizing speculation on regulatory adjustments.
Thus, Hungary continues to adhere to its traditional fiscal policy by excluding crypto assets from its reserves, reflecting broader trends among central banks in Europe.
