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Jan Kubicek, a member of the Czech National Bank (CNB), has expressed doubts about the potential inclusion of Bitcoin in the bankโs reserves. It raised concerns about legal uncertainty and underlying fluctuations associated with cryptocurrencies.
The Czech National Bank official takes Bitcoin
Earlier this year, CNB ALES MICHL ruler suggested the idea of โโlooking at Bitcoin as part of the bankโs reserves. As a result, the bank began an assessment to explore the expansion of assets in its wallet.
In a recent interview with him, Kubicek confirmed that Bitcoin is just one of the assets that are examined. However, he still doubts its inclusion, citing legal issues and the challenges of bitcoin incorporation into the bankโs accounting and review systems. He pointed out that โmy position is skeptical in bitcoin.โ
The fluctuation is another great concern for Kubicek, as it indicated the difficulty of predicting the future market behavior of Bitcoin. He pointed out that if more institutional investors begin to adopt Bitcoin, price fluctuations may differ from those observed in the past decade.
Kubicek noted that the bankโs review of the new asset categories can end by October. He also mentioned the possibility of exploring the bonds of international companies and targeted stock indicators, especially in technology and real estate investment funds as alternatives.
While CNB Vice Governor Eva Zammarava Bitcoin refused as a suitable backup asset, Christine Lagarde, President of the European Central Bank, reported that Bitcoin was not suitable for the reserves of the central bank.
Currently, the Czech National Bank holds 142.8 billion euros (155.75 billion dollars), about 45 % of the countryโs gross domestic product. In recent years, the bank has diversified its reserves, with an increasing part of the wallet now designated for gold and shares.
Also read: South Korea: Donโt consider Bitcoin in foreign exchange reserves
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