A top National Bank of the Czech Republic executive says adding Bitcoin to reserves is too risky because it creates legal problems and may swing wildly in value. On March 18 Jan Kubicek from the CNB told Reuters he still doubts Bitcoin before the bank starts investing in other asset types. Kubicek explained that the bank reviews various asset types yet opposition surrounds Bitcoin as a possible choice.
Our team will examine multiple kinds of assets for potential selection. Bitcoin is just one of them. He takes a cautious view about Bitcoin. The Bank of Czech Republic refuses to invest in Bitcoin because its extreme price fluctuations would hurt its goal of secure and accessible reserves. The central bank would need unique reporting procedures because Bitcoin has limited regulatory definition according to Kubicek.
Czech Bank Reviews Bitcoin Reserve Viability
Kubicek warned that Bitcoin still lacks clear legal definitions in its operating environment. Holding Bitcoin at the CNB would need new systems for tracking money flows and running risk evaluations before the bank could accept this digital currency. These challenging legal and operational aspects make it hard to recognize Bitcoin as a proper reserve investment tool.
In spite of their doubts the CNB plans to complete their research on adding new reserve assets to their portfolio. Kubicek informed that the ongoing research will reach its conclusion by October 2025. The organization reviews both international corporate bonds corporate technology stock indices as well as property investment funds for alternative investment strategies.
Governor Ales Michl brought the plan to put Bitcoin in the CNB reserves to the public in January 2025. The banking community reacted positively to his plan but government officials and financial experts strongly rejected it. As the leader of European Central Bank (ECB) Christine Lagarde openly defended her stance against including Bitcoin in the reserves. She argued that central banks need reserves secure enough for investing because Bitcoin stays highly volatile in its price.
Lagarde emphasized that reserves must fulfill all three criteria of being highly liquid while secure and protected during her discussion about the CNB’s Bitcoin investment plans. The CNB remains undecided on Bitcoin but conducts an asset review which implies digital assets still have a chance of inclusion. Central banks remain wary about adopting cryptocurrency because financial institutions elsewhere are still examining the technology during times of uncertainty.
The Czech National Bank will decide on Bitcoin’s reserve position based on research results and worldwide financial changes and Bitcoin market stability improvements.
