Czech central banker Kubicek 'sceptical' of bitcoin as reserve asset

Reuters

Wed, Mar 19, 2025, 5:10 AM 2 min read

PRAGUE (Reuters) - Czech National Bank committee subordinate Jan Kubicek is "sceptical" astir the inclusion of bitcoin among the bank's hefty reserves, wary of ineligible uncertainties and concerns astir volatility of the integer currency.

CNB Governor Ales Michl enactment bitcoin up for information earlier this year, and the slope has begun an investigation looking into broadening the plus classes it holds successful its reserves portfolio.

"We volition measure antithetic classes of assets. Bitcoin is conscionable 1 of them," Kubicek said successful an interrogation connected Tuesday. "My presumption is alternatively sceptical astir bitcoin."

He said bitcoin's ineligible presumption was 1 concern, and that nonstop ownership would mean processing galore caller processes successful accounting oregon auditing, for example.

Volatility was different interest and assessing marketplace terms developments was difficult, helium said.

"We cannot beryllium definite that bitcoin's volatility successful the coming years volition reflector the patterns observed implicit the past decennary due to the fact that I fishy that, if much organization investors judge bitcoin arsenic an concern asset, it volition commencement to behave otherwise from what we person seen truthful far."

The bank's survey connected caller plus classes could travel by October, Kubicek said.

Holdings of planetary firm bonds could beryllium explored, helium said, arsenic good arsenic the anticipation of investing successful much targeted equity indices, specified arsenic for technology, and spot concern funds.

CNB Vice Governor Eva Zamrazilova has said bitcoin is not a suitable plus for reserves, portion European Central Bank brag Christine Lagarde has besides said Europe's cardinal banks are not the spot for it.

The Czech cardinal bank's reserves - astatine 142.8 cardinal euros ($155.75 billion) - are astir 45% of gross home product, and it has diversified holdings successful caller years, gradually purchasing gold, and shifting a larger information of the portfolio into equities.

($1 = 0.9168 euros)

(Reporting by Jason Hovet; Editing by Rachna Uppal)