Czech National Bank Official Questions Adding Bitcoin to the Institution’s Reserves

Key Takeaways:

• Czech bank official questions adding Bitcoin to national reserves.
• He worries about Bitcoin's price swings and institutional impact on markets.
• The bank's Governor supports Bitcoin and suggests a €140 billion allocation.

Czech National Bank (CNB) board member Jan Kubicek has voiced skepticism about including Bitcoin in the bank’s reserves. He cited concerns over the cryptocurrency’s extreme price volatility and unclear legal status. 

Kubicek also warned that creating a Bitcoin reserve would require major changes in the bank’s accounting and auditing processes, making its inclusion even more complicated.

Bitcoin's Past Trends May Shift with Growing Institutional Adoption

According to Reuters, Kubicek warned that Bitcoin's future price movements may not follow historical patterns, especially as institutional investors increasingly treat it as an asset class. This changing landscape could make Bitcoin's behavior less predictable than in the past.

Kubicek revealed that the bank is evaluating different asset classes for potential inclusion in its reserve. His cautious approach contrasts sharply with Czech National Bank Governor Aleš Michl, who has proposed investing billions of euros from public funds into Bitcoin. 

Should the board approve Michl's plan, the Czech National Bank could allocate up to 5% of its €140 billion reserve—approximately $7.03 billion—to Bitcoin. This decision would position it among the first major central banks to officially hold cryptocurrency as a reserve asset.

Nevertheless, Kubicek's concerns remain strong, especially with the latest developments in the crypto market. 

BTC price reached an all-time high of $109,114 on President Trump’s inauguration day in January.  By March 6, POTUS signed an executive order establishing a strategic Bitcoin Reserve. The BTC price reacted sharply, dropping to $84,979 before stabilizing around $89,000. 

Just a few minutes ago, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve.

The Reserve will be capitalized with Bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings. This means it…

— David Sacks (@davidsacks47) March 7, 2025

Despite the volatility, countries like El Salvador continue to add Bitcoin to their reserves. 

Meanwhile, major institutions, including Michael Saylor’s company, Strategy, recently acquired 130 Bitcoin, bringing its total holdings to 499,226 BTC.

Large asset managers like BlackRock have also contributed to Bitcoin’s growing adoption through Bitcoin exchange-traded funds (ETFs). 

Despite these developments, BTC price has struggled, currently trading at $85,800, down 21.29% from its all-time high.

Historically, positive news about innovation or adoption has driven up the BTC price, but this pattern is shifting. Kubicek believes institutional investors are altering the market’s trend.

Geopolitical events have also impacted BTC price trends. In 2022, the Ukraine-Russia conflict caused sharp declines in Bitcoin’s value. 

BREAKING: #Bitcoin falls 9% after confirmation of Russian air strikes sent to Ukraine's capital, Kyiv.

— Watcher.Guru (@WatcherGuru) February 24, 2022

More recently, President Trump’s tariff trade policies have contributed to price fluctuations, reinforcing Kubicek’s belief that Bitcoin’s volatility could pose a risk to the Czech National Bank’s Bitcoin Reserve strategy.

Kubicek fears that if the Czech National Bank implements a Bitcoin Reserve, the asset’s unpredictable nature and increasing institutional influence could lead to instability, affecting its long-term value.

Skepticism About A Bitcoin Reserve Extends to Other Central Banks

Kubicek’s skepticism is not unique. Other central bank governors have expressed similar concerns about creating a Bitcoin reserve.

At the 2025 World Economic Forum in Davos, South African Reserve Bank Governor Lesetja Kganyago dismissed the idea of a Bitcoin Reserve. He argued that gold, with its historical significance, remains a more stable and reliable asset. 

Kganyago questioned Bitcoin’s legitimacy by comparing it to other commodities, such as platinum, coal, beef, and apples, implying that Bitcoin lacks intrinsic value.

European Central Bank (ECB) President Christine Lagarde echoed similar sentiments. She stated that Bitcoin is unsuitable for inclusion in European central banks’ reserves due to its volatility and lack of regulatory oversight.

🚨BREAKING: ECB President Christine Lagarde expressed her confidence that #Bitcoin won’t be included in the European Union’s reserves!

She talks about #XRP without mentioning XRP. pic.twitter.com/6tQfHpmB0z

— JackTheRippler ©️ (@RippleXrpie) January 30, 2025

The Czech National Bank’s reserves stand at €142.8 billion ($155.75 billion), representing about 45% of the country’s GDP. Over the years, the bank has diversified its holdings, increasing its gold reserves and shifting portions of its portfolio into equities. 

Kubicek indicated that alternative investments, such as international corporate bonds, targeted equity indices in technology, and property investment funds, may be explored as alternatives to a Bitcoin Reserve.