The Czech National Bank (CNB) remains cautious about adding Bitcoin to its reserves, with board member Jan Kubicek citing legal complexities and extreme price volatility as key concerns.

While the bank is evaluating various asset classes, Kubicek expressed scepticism about Bitcoin's suitability as a central bank reserve asset.

Kubicek noted that Bitcoin's unpredictable price swings undermine its stability, making it less attractive for reserve holdings.

He also highlighted the need for new accounting and auditing processes if Bitcoin were to be included. The CNB's assessment of alternative assets, including corporate bonds and technology stocks, is expected to conclude by October.

The idea of holding Bitcoin in reserves was initially proposed by CNB Governor Ales Michl in January 2025, sparking interest in the crypto community but drawing scepticism from policymakers.

European Central Bank President Christine Lagarde opposed the move, emphasising that central bank reserves must prioritise liquidity and security.

Despite concerns, several countries have already integrated Bitcoin into their strategic reserves. The US, under the Trump administration, has taken a more proactive stance on cryptocurrency, influencing global discussions on digital asset adoption.

For more information on these topics, visit diplomacy.edu.