PRAGUE (Reuters) – Jan Kubisek, a board member of the Czech National Bank, is “skeptical” about the inclusion of Bitcoin in the bank’s large reserves, noting legal uncertainty and concerns regarding the volatility of digital currency.
CNB Governor Yales Missour posted Bitcoin for consideration earlier this year, and the bank began an analysis considering expanding the asset classes it holds in its reserve portfolio.
“We evaluate different classes of assets. Bitcoin is just one of them,” Kubicek said in an interview Tuesday. “My position is quite skeptical about Bitcoin.”
He said that Bitcoin’s legal status is one concern, and its direct ownership means developing many new processes, for example, in accounting and auditing.
Volatility was another concern, and it was difficult to assess the development of market prices, he said.
“We cannot be certain that Bitcoin volatility over the next few years will reflect the patterns observed over the past decade.
Kubicek said the bank’s investigation into the new asset class could be conducted by October.
He said it could investigate international corporate bond holdings and similarly investigate the possibility of investing in more targeted stock indices, such as technology and real estate investment funds.
CNB Lieutenant Governor Eva Zamrazilova said Bitcoin is not a suitable asset for the reserves, but European Central Bank boss Christine Lagarde said that the European central bank is not the place.
The Czech central bank’s reserves (142.8 billion euros ($155.75 billion)) represent around 45% of gross domestic product, and has diversified its holdings in recent years, gradually purchasing gold and transferring the majority of its portfolio to stocks.
($1 = 0.9168 Euro)
(Reporting by Jason Hovet, Editing by Rachna Uppal)