Czech National Bank Split on Bitcoin: Board Member Questions Viability as Reserve Asset

A growing divide has emerged within the Czech National Bank (CNB) over Bitcoin’s role in its reserve strategy. Board member Jan Kubíček has raised concerns about the cryptocurrency’s legal ambiguity and price volatility, casting doubt on its suitability as a reserve asset.

Kubíček acknowledged that Bitcoin is under evaluation as part of the CNB’s diversification efforts. However, he emphasized that integrating BTC would require significant structural changes, including an overhaul of the bank’s accounting and auditing frameworks. Without clear regulations, he argued, Bitcoin remains a risky addition to national reserves.

Price instability is another major concern. BTC’s fluctuations—ranging between $77,186 and $109,021 this year—make risk assessment challenging. Kubíček also warned that institutional adoption could further alter Bitcoin’s volatility, making it difficult to predict future price movements.

His cautious stance contrasts with that of CNB Governor Ales Michl, a vocal proponent of Bitcoin’s potential role in national reserves. Michl has proposed allocating up to 5% of the CNB’s $146.13 billion reserves to Bitcoin, an investment that could total $7.3 billion—far surpassing the bank’s $4.3 million gold holdings.

Michl believes that central banks should embrace Bitcoin’s potential rather than dismiss it outright, arguing that the technology could strengthen financial stability. Meanwhile, Kubíček remains skeptical, emphasizing the need for further study before making a commitment.

The CNB’s final decision is expected by October, a timeframe that could determine whether Bitcoin secures a place in the Czech Republic’s financial strategy or remains a speculative asset on the sidelines.