Bitcoin may be gaining traction globally, but skepticism remains strong within certain financial institutions. One such voice is Jan Kubicek, a board member of the Czech National Bank (CNB), who expressed reservations about the potential inclusion of bitcoin in the bank’s reserve portfolio.
In a recent interview, Kubicek made his position clear, stating, “My position is rather sceptical about bitcoin.” His cautious stance contrasts with the growing enthusiasm among some financial leaders who see cryptocurrencies as viable components of modern portfolios. Kubicek’s concerns revolve primarily around two major factors: the legal uncertainties surrounding bitcoin and its notorious volatility.
Earlier this year, CNB Governor Ales Michl introduced the idea of evaluating bitcoin as part of a broader analysis aimed at diversifying the central bank’s reserves. The CNB, whose reserves currently total approximately €142.8 billion—equivalent to about 45% of the Czech Republic’s gross domestic product—has already expanded its holdings in recent years, increasing its exposure to equities and gradually acquiring gold. However, the prospect of adding bitcoin to this mix appears far from certain.
Kubicek emphasized that incorporating bitcoin would require the development of entirely new systems, particularly in areas such as accounting and auditing. The lack of a well-defined legal framework complicates matters further, raising questions about compliance and oversight.
Another pressing issue for the CNB board member is bitcoin’s price volatility. Kubicek noted that projecting bitcoin’s market behavior is inherently challenging. He explained, “We cannot be certain that bitcoin’s 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.”
While the central bank continues its study into alternative asset classes, Kubicek mentioned that results might be expected by October. Apart from bitcoin, the bank is also considering options like international corporate bonds, targeted equity indices—particularly those focused on technology—and real estate investment funds.
Kubicek’s skepticism is not isolated. CNB Vice Governor Eva Zamrazilova has publicly echoed similar sentiments, asserting that bitcoin does not belong in the bank’s reserves. On a broader scale, European Central Bank President Christine Lagarde has also dismissed the idea, reinforcing the prevailing view among European central banks that cryptocurrencies are not appropriate for reserve holdings.
Despite the increasing mainstream adoption of digital assets, institutions like the Czech National Bank remain cautious. The balance between innovation and stability continues to be a delicate one, and for now, it seems clear that bitcoin has yet to prove itself as a reliable cornerstone of central bank reserves.
By Alejandro Silva Ramírez, Crypto Analyst & Columnist