Czech Central Bank Skeptical About Bitcoin as Reserve Asset

According to PANews, Jan Kubicek, a board member of the Czech National Bank (CNB), has expressed skepticism regarding the inclusion of Bitcoin in the bank's extensive reserve assets. His concerns primarily revolve around the legal uncertainties and the volatility associated with digital currencies. Earlier this year, CNB Governor Ales Michl suggested considering Bitcoin, prompting the bank to begin analyzing the potential expansion of asset categories in its reserve portfolio. However, CNB Vice Governor Eva Zamrazilova has stated that Bitcoin is not a suitable reserve asset. In an interview on Tuesday, Kubicek remarked, "We will evaluate different asset categories, and Bitcoin is just one of them. I am quite skeptical about Bitcoin." He highlighted the legal status of Bitcoin as a concern, noting that directly holding Bitcoin would necessitate developing numerous new processes in areas such as accounting or auditing. Additionally, he mentioned volatility as another issue, making it challenging to assess market price trends. Kubicek stated, "We cannot be certain if Bitcoin's volatility in the coming years will resemble the patterns observed over the past decade, as I suspect that if more institutional investors accept Bitcoin as an investment asset, its performance will differ from what we have seen so far." Kubicek indicated that the bank's research into new asset categories might be completed by October. This research could explore the possibility of holding international corporate bonds and investing in more targeted stock indices, such as technology, and real estate investment funds.