Czech central banker questions Bitcoin’s place as a reserve asset amid volatility concerns

Jan Kubíček, a Czech National Bank’s (CNB) board member, has reportedly questioned Bitcoin’s 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, Kubíček acknowledged that Bitcoin is under review as part of the CNB’s reserve diversification plan. However, he expressed concerns about its legal status, noting that adopting it would require overhauling the bank’s 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. Kubíček pointed out that BTC’s 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 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.”

Kubíček’s position differs from that of CNB Governor Ales Michl, who has been pushing to add Bitcoin to the bank’s 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 investment—far exceeding its current $4.3 million gold holdings.

Michl has also argued that central banks should explore Bitcoin’s potential rather than dismiss it outright. He believes that BTC and its underlying technology could enhance rather than disrupt financial stability.

Meanwhile, Kubíček 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 Republic’s reserve strategy or remains an unlikely candidate.