Yan Kubic, a member of the Czech National Bank of Czech CNB, expressed questions about the suitability of bitcoin as a reserve asset, noting that he was not stable and his legal status. Kubic explained that these factors raised doubts about Bitcoin’s integration, as part of the bank’s reserve portfolio.
Bitcoin under review despite organizational challenges
Kubic confirmed that the bank is studying bitcoin as part of a plan to diversify the reserves, but it expressed concern about its legal status. He pointed out that the adoption of this currency will require the restructuring of the bank accounting and auditing systems, which puts great challenges in front of the merging of bitcoin without clear regulations.
The fluctuation of the market represents a major obstacle
Kubic drew attention to the volatility of the bitcoin, which ranged between $ 77,186 and 109,021 dollars, which increases the difficulty of assessing the associated risks.
He added that the adoption of more institutional investors of bitcoin may lead to a change in his behavior, which makes predicting future fluctuations more difficult.
“We cannot make sure that the bitcoin flipping in the coming years will reflect the patterns that we have seen over the past decade, if more bitcoin institutional investors are accepted as an investment asset, it may begin to act differently from what we have seen so far,” Kubic said.
Different views within the bank
Kubic’s position is different from the central bank ruler, Alice Michel, who supports the idea of adding bitcoin to the bank’s reserves.
Michel suggested earlier this year that Bitcoin would be a strategic origin for diversification.
If it is approved, the bank may allocate up to 5% of its reserves of 146.13 billion dollars to bitcoin, equivalent to about 7.3 billion dollars, compared to its current possessions of gold of $ 4.3 million.
Continue study and evaluation
Kubic confirmed that the Czech Central Bank is still studying bitcoin and other new assets.
The results, expected to be issued by October, are expected to be determined whether Bitcoin will become part of the reserve strategy in the Czech Republic or will remain an excluded option.
