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Investing.com -- The Czech National Bank (CNB) is exploring the possibility of adding bitcoin to its reserves, as revealed by board member Jan Kubicek. However, Kubicek has expressed skepticism about the inclusion of the digital currency, citing legal uncertainties and concerns about its volatility.
CNB Governor Ales Michl had proposed the consideration of bitcoin earlier this year. The bank has since initiated an analysis to investigate the potential of broadening the types of assets held in its reserves portfolio. "We will assess different classes of assets. Bitcoin is just one of them," Kubicek stated in an interview on Tuesday.
Kubicek highlighted that the legal status of bitcoin is a significant concern. He also noted that if the bank were to directly own bitcoin, it would necessitate the development of numerous new processes in areas such as accounting and auditing.
Another issue Kubicek raised is the volatility of the digital currency, stating that predicting market price developments for bitcoin is challenging. He expressed doubt that the volatility patterns observed over the past decade would continue in the coming years, particularly if more institutional investors begin to accept bitcoin as an investment asset.
The bank’s study on the inclusion of new asset classes in its reserves is expected to be completed by October, according to Kubicek.
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