Czech National Bank board member Jan Kubicek expressed skepticism about including bitcoin in the bank's substantial reserves, citing legal uncertainties and concerns regarding the digital currency's volatility.
Earlier this year, CNB Governor Ales Michl proposed the idea of considering bitcoin, prompting the bank to begin an analysis of expanding the asset classes within its reserves portfolio.
"We will assess different classes of assets. Bitcoin is just one of them," Kubicek stated in a recent interview. He emphasized his cautious stance on bitcoin.
Kubicek highlighted the uncertainty surrounding bitcoin's legal status and noted that direct ownership would necessitate the development of new accounting and auditing processes. Additionally, he raised concerns about the cryptocurrency's volatility, mentioning the difficulty in predicting market price developments.
"We cannot assume that bitcoin's volatility in the coming years will replicate the patterns observed over the past decade. If more institutional investors embrace bitcoin as an investment asset, its behavior may change significantly," he said.
The bank's research on new asset classes may be completed by October, Kubicek noted. He mentioned exploring holdings in international corporate bonds and the possibility of investing in targeted equity indices, such as technology, as well as property investment funds.
CNB Vice Governor Eva Zamrazilova has stated that bitcoin is not a suitable asset for reserves, and the European Central Bank has indicated that it does not belong in the portfolios of central banks.
The Czech central bank's reserves stand at 142.8 billion euros ($155.75 billion), representing approximately 45% of the gross domestic product. In recent years, the bank has diversified its holdings by gradually purchasing gold and increasing the proportion of equities in its portfolio.