Czech National Bank board member expresses skepticism over Bitcoin’s inclusion in reserves
March 19, 2025
Czech National Bank board member Jan Kubicek is “skeptical” regarding adding Bitcoin to the bank’s substantial reserves. He warns about possible legal problems and the volatility of the digital currency.
Earlier this year, CNB Governor Aleš Michl proposed exploring Bitcoin as part of a broader analysis into diversifying the bank’s reserve assets. However, Kubicek believes the focus should be on international corporate bonds and targeted equity indices.
Kubicek urges investors to look into holdings of international corporate bonds and invest in more targeted equity indices
In an interview, Kubicek said, “We will assess different classes of assets. Bitcoin is just one of them.” He added, “My position is rather skeptical about Bitcoin.”
Kubicek listed some of the problems with Bitcoin, including its legal status, direct ownership and volatility. He explained that the digital asset’s legal status and direct ownership would require creating numerous new procedures in areas like accounting and auditing.
In addition, concerning volatility, he said it was challenging to evaluate changes in market prices. The central banker noted that they could not be certain that Bitcoin’s volatility in the coming years will mirror the patterns observed over the past decade.
He suspected that if more institutional investors accepted Bitcoin as an investment asset, it would start to behave differently from what everyone has seen so far.
Kubicek stated that the Czech National Bank may begin studying new asset classes by October. He suggested looking into holdings of international corporate bonds and the potential for investing in more targeted equity indices, like those for technology and real estate investment funds.
Apart from Kubicek, other high-ranking officials criticized Bitcoin’s inclusion in reserves. CNB Vice Governor Eva Zamrazilova said Bitcoin is not a good reserve asset. In addition, European Central Bank head Christine Lagarde stated that it is inappropriate for use in European central banks.
The Czech central bank’s reserves total 140 billion euros, worth around $151 billion or about 45% of the Czech Republic’s GDP. The bank has diversified its holdings recently, gradually buying gold and moving a larger percentage of its portfolio into equities.
The Czech Central Bank approved the proposal to evaluate Bitcoin investment reserves
Following the bank’s statement on January 30 regarding a proposal by its governor, Aleš Michl, it stated that the CNB was prepared to assess “whether it would be appropriate in terms of diversification and return to include other asset classes in the reserves.” This included Bitcoin.
The CNB said, “The central bank has been increasingly diversifying its investments over the last two years as part of its reserve management strategy.” It added, “At the proposal of Governor Aleš Michl, the CNB is to assess whether it would be appropriate in terms of diversification and return to include other asset classes in the reserves as well.”
The board said it would not implement any changes until the analysis was complete and a decision made on future action. Its quarterly and annual reports would also disclose any new investments in the reserve portfolio.
If approved, the CNB would become the first publicly known central bank to own Bitcoin, marking a significant shift in institutional cryptocurrency adoption.
Trezor specialist and Bitcoin analyst Lucien Bourdon highlighted that the Czech Republic was about to make history. If approved, it would mark a radical change for the country and for the use of Bitcoin more broadly as part of countries’ national economic plans.
In response to European Central Bank President Christine Lagarde’s criticism of BTC, Bourdon pointed out that while Lagarde argued Bitcoin is unsuitable for reserves due to its need for liquidity, security, and safety, Bitcoin is one of the most liquid assets globally, trading 24/7 without the need for a counterparty.
He also contrasted Bitcoin with the euro, describing it as a complex system of pegged currencies requiring ongoing intervention to remain stable, questioning what is unstable in this context.
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