Jan Kubíček, a board member of a Czech National Bank (CNB), has Reportedly asked the suitability of Bitcoin as a reserveom.
He pointed out to the legal uncertainty and price price instability as important reasons for skepticism, and doubted whether the bank will integrate the digital active in its portfolio.
According to the report, Kubíček recognized that Bitcoin is being assessed as part of the CNB diversification plan. However, he expressed his concern about its legal status and noted that accepting it should overhaul the banking and audits systems of the bank.
The bank experts further argued that the inclusion of Bitcoin in the reserve structure yields considerable challenges without clear regulations.
Market volatility remains a different primary care. Kubíček pointed out that the fluctuating price of BTC, which this year varies from $ 77,186 to $ 109,021, complicates risk assessments.
He also suggested that if more institutional investors assume BTC, its behavior could shift, making future volatility more difficult to predict.
He added:
“We cannot be sure that the volatility of Bitcoin will reflect the patterns in the past decade in the coming years, because I suspect that, as more institutional investors, accept Bitcoin as an investment active, it will behave differently than what we have seen so far.”
The position of Kubíček differs from CNB Gouverneur Ales Michl, who encourages Bitcoin to add to the bank’s reserves.
Earlier this year, Michl suggested that BTC could be a strategic possession for diversification. If approved, the CNB could assign to 5% of its reserves of $ 146.13 billion to Bitcoin, which translates into an estimated investment of $ 7.3 billion – for its current $ 4.3 million golden interests.
Michl has also argued that central banks must explore the potential of Bitcoin instead of completely rejecting it. He believes that BTC and underlying technology can improve financial stability instead of disturbing.
In the meantime, Kubíček confirmed that the CNB is still studying BTC and other emerging asset classes. The findings, which are expected by October, will probably determine whether BTC will get a foothold in the reserve strategy of the Czech Republic or will remain an unlikely candidate.
