Jan Kubiček, a Czech National Bank’s (CNB) board member, has reportedly expressed doubts about Bitcoin's suitability as a reserve asset. He cited legal uncertainty and price instability as significant reasons for skepticism, questioning whether the bank should integrate the digital asset into its portfolio.

Jan acknowledged that Bitcoin is currently under review as part of the CNB's reserve diversification plan. However, he raised concerns about its legal status and the potential need for significant changes to the bank's accounting and auditing systems for its adoption. The lack of clear regulations surrounding Bitcoin was highlighted as a major hurdle in incorporating it into the reserve structure.

Market volatility was another key concern raised by Jan. He pointed out the fluctuating price of Bitcoin, ranging from $77,186 to $109,021 this year, which complicates risk assessments. Additionally, he noted that the behavior of Bitcoin may change if more institutional investors start adopting it, potentially leading to increased unpredictability in its volatility.

Contrary to Jan stance, CNB Governor Ales Michl has been advocating for the addition of Bitcoin to the bank's reserves. Earlier this year, Michl proposed that Bitcoin could serve as a strategic asset for diversification, potentially allocating up to 5% of the bank's $146.13 billion reserves to Bitcoin.

Michl believes that central banks should explore the potential of Bitcoin and its underlying technology, viewing it as a tool for enhancing financial stability rather than causing disruption. He has emphasized the importance of considering Bitcoin as an investment asset with long-term benefits.

While Jan's reservations remain, the CNB continues to study Bitcoin and other emerging asset classes. The findings of this analysis, expected by October, will play a crucial role in determining whether Bitcoin will become a part of the Czech Republic's reserve strategy or remain an unlikely candidate.