The Czech Finance Minister, Zbynek Stanjura, recently raised concerns about Bitcoin's volatility. This comes just before a crucial meeting of the central bank on January 30.
The Czech National Bank (CNB) is responding to a proposal from Governor Aleš Michl. He suggested creating a Bitcoin reserve valued at $7 billion. However, local officials have expressed ongoing worries about this plan.
As the CNB meeting approached, Stanjura cautioned against investing up to 5% of the central bank’s reserves in Bitcoin. He pointed out that Bitcoin’s extreme price swings do not match the stability that central banks are supposed to represent.
“The central bank should symbolize stability. If you look at Bitcoin trading, it’s definitely not a stable asset,” Stanjura stated.
During the January 30 meeting, Michl proposed a plan for acquiring Bitcoin. Many in the industry expected a decision on whether to allocate $7 billion from the central bank’s reserves to Bitcoin.
However, the board decided that the CNB would only explore the possibility of adding new asset classes to its reserves. They did not specifically mention Bitcoin.
“At the suggestion of Governor Aleš Michl, the CNB will assess whether it would be appropriate, from a diversification and yield perspective, to expand foreign exchange reserves to include investments in other asset classes,” they announced.
Michl emphasized the volatility of Bitcoin, stating that it complicates the ability to take advantage of its current low correlation with other assets. He mentioned that no immediate decision would be made, as “thoughtful analysis is needed.”
Industry leaders in the Czech Republic welcomed Michl’s proposal. They see it as a smart move to diversify away from the euro and recognize Bitcoin's long-term potential.
“The Czech Republic has long been a leader in Bitcoin innovation. It’s home to the first mining pool, the first hardware wallet, and one of the largest Bitcoin conferences in the world, held annually in Prague,” said Trezor analyst Lucien Bourdon.
While some argue that Bitcoin wasn’t meant for central bank reserves, Bourdon disagrees. He believes this reflects Bitcoin’s growing role as a reliable asset in a changing financial landscape.
“Bitcoin must be valuable to everyone—individuals, institutions, and states—while ensuring that no one can control its network alone. The fact that central banks are now competing to acquire Bitcoin shows its resilience and appeal,” Bourdon added.
This news comes as U.S. lawmakers are pushing for strategic Bitcoin reserve initiatives in various states and at the federal level.
On January 29, Senator Cynthia Lummis urged the U.S. to adopt a strategic Bitcoin reserve, potentially ahead of the Czech Republic. Meanwhile, European Central Bank President Christine Lagarde stated on January 30 that she believes Bitcoin will not enter reserves in the European Union.