Czech Republic FM Sounds Alarm on Creating Bitcoin Reserve

Czech Finance Minister Zbynek Stanjura has voiced concerns over a Bitcoin-related proposal. He opposed the Central Bank Governor Ales Michl’s idea to consider investing a portion of the country’s foreign currency reserves in BTC.

Czech Finance Minister Opposes Bitcoin Reserve Idea

While acknowledging the Czech National Bank’s (CNB) autonomy, Stanjura warned about the risks associated with adding the crypto to reserve holdings. He pointed to Bitcoin’s high volatility as a key issue. “I personally have misgivings about it,” he told reporters in Prague on Friday. “The central bank should symbolize stability. If you look at Bitcoin trading, it’s definitely not a stable asset.”

His remarks followed Michl’s statement to the Financial Times on Thursday, where the governor suggested that the CNB could explore allocating part of its vast reserves—amounting to billions of euros—into Bitcoin. However, Michl later clarified on X that the idea was still in its early stages and that no immediate decision had been made. He emphasized that the central bank would conduct a thorough evaluation of the proposal before taking any steps.

JUST IN: 🇨🇿 Czech Finance Minister warns against adding #Bitcoin to their Reserves – Bloomberg

He says, “It’s definitely not a stable asset.” 🤡 pic.twitter.com/gYQvCBEmt9

— Bitcoin Magazine (@BitcoinMagazine) January 30, 2025

The discussion comes as central banks worldwide remain cautious about integrating cryptocurrencies into official reserves. Bitcoin price fluctuations have led financial regulators in various countries to question its suitability as a stable asset for long-term holdings.

Stanjura’s comments suggest that the Czech government remains wary of digital assets playing a role in the country’s monetary policies. However, these remarks cannot directly influence CNB’s decisions.

Also, on the global front, U.S. Senator Cynthia Lummis spotlighted FOMO around nations looking to adopt BTC with Czech’s recent move. Hence, she urged the U.S. lawmakers to consider a similar initiative with President Donald Trump supporting the idea of a Bitcoin reserve.

Also Read: Illinois Proposes Strategic Bitcoin Reserve With Minimum 5 Years Hold