The Czech National Bank’s decision to include Bitcoin in its reserves system depends on legal and market risk analysis by its officials. CNB board member Jan Kubicek brought back the debate on March 18 when he shared his doubts to Reuters.

The Czech central bank studies different investment areas but Jan Kubicek still doubts Bitcoin as an option. He explained that BTC price instability makes it problematic to use as a CNB reserve asset.

They will study various categories of assets. According to Mr. Kubicek Bitcoin represents only one part of the bank’s investable asset list. He explained that using BTC in reserves requires separate financial management tools to be built before adoption can occur.

“We cannot be certain that Bitcoin’s volatility in the coming years will mirror the patterns observed over the past decade because I suspect that, if more institutional investors accept Bitcoin as an investment asset, it will start to behave differently from what we have seen so far.”

Jan Kubicek

Bitcoin Sparks Reserve Debate

The CNB must finish their evaluation of multiple investment options by October this year. In addition to reviewing Bitcoin the bank evaluates international bonds, corporate stock indexes and real estate fund opportunities as reserve investments. The review process seeks to discover investment opportunities that match the bank’s future stability and cash availability targets.

On January 31st 2025 CNB Governor Ales Michl mentioned the possibility of putting Bitcoin into central bank reserves. His comments created dialogue between market professionals while officials remained doubtful about using Bitcoin for reserve funds.

ECB President Christine Lagarde spoke against the plan because central bank reserves should stay in reliable liquid assets. According to Lagarde our reserves must be easily traded assets that preserve freedom and safety in the nation. Several major financial leaders throughout Europe share concerns about Bitcoin because of its unclear regulatory framework.

Despite criticism from top European officials several nations including the US have chosen Bitcoin as an asset for their national strategic funds. The Trump administration shows a stronger digital asset focus for the US as it follows worldwide government interest in cryptocurrency reserves. The nation of El Salvador joined other world economies by adding Bitcoin to their financial management systems to create new internet money market ideas.

The CNB testing period runs on while experts disagree about whether Bitcoin should join bank reserves. Although the institution keeps an open mind when examining new reserve assets they hesitate to embrace Bitcoin due to its market instability plus legal ambiguities. Expansion of cryptocurrency use worldwide will probably impact government decision-making about digital assets. The Czech banking system protects stability and follows rules before considering Bitcoin as part of its assets.