Czech central banker questions Bitcoins place as a reserve asset amid volatility concerns
Jan Kubíek, a Czech National Banks (CNB) board member, has reportedly questioned Bitcoins suitability as a reserve asset.
He pointed to its legal uncertainty and price instability as key reasons for skepticism, casting doubt on whether the bank will integrate the digital asset into its portfolio.
According to the report, Kubíek acknowledged that Bitcoin is under review as part of the CNBs reserve diversification plan. However, he expressed concerns about its legal status, noting that adopting it would require overhauling the banks accounting and auditing systems.
The banking experts further argued that incorporating Bitcoin into the reserve structure presents significant challenges without clear regulations.
Market volatility remains another primary concern. Kubíek pointed out that BTCs fluctuating price, which has ranged from $77,186 to $109,021 this year, complicates risk assessments.
He also suggested that if more institutional investors adopt BTC, its behavior could shift, making future volatility harder to predict.
He added:
We cannot be certain that Bitcoins volatility in the coming years will mirror the patterns observed over the past decade because I suspect that, if more institutional investors accept Bitcoin as an investment asset, it will start to behave differently from what we have seen so far.
Kubíeks position differs from that of CNB Governor Ales Michl, who has been pushing to add Bitcoin to the banks reserves.
Earlier this year, Michl proposed that BTC could be a strategic asset for diversification. If approved, the CNB could allocate up to 5% of its $146.13 billion reserves to Bitcoin, translating to an estimated $7.3 billion investmentfar exceeding its current $4.3 million gold holdings.
Michl has also argued that central banks should explore Bitcoins potential rather than dismiss it outright. He believes that BTC and its underlying technology could enhance rather than disrupt financial stability.
Meanwhile, Kubíek confirmed that the CNB is still studying BTC and other emerging asset classes. The findings, expected by October, will likely determine whether BTC gains a foothold in the Czech Republics reserve strategy or remains an unlikely candidate.
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Text source: CryptoSlate
