“You have the potential to accumulate a significant amount of wealth, as well as suffer substantial losses,” stated a bank official. “Nevertheless, we have a preference for a specific option.”
Summary
President Adam Glapinski of the National Bank of Poland has stated that the central bank will not contemplate maintaining Bitcoin reserves “under any circumstances.”
During a press conference, Glapiski stated that the National Bank of Poland (“NBP”) would only contemplate adding a specific asset to its reserves if it is “entirely secure.”
Glapinski contrasted Bitcoin unfavorably to gold, which he claims contributed to the bank’s reserves increasing in value by 22% last year.
Is There a Possibility of a Future?
Nevertheless, the president of the NBP did not entirely disregard the cryptocurrency, stating that “there is a lot to be said about Bitcoin,” even though his bank does not deem it to be a “permanent, secure element” of its holdings.
He stated, “You have the potential to accumulate a significant amount of wealth, as well as to incur a substantial reduction in wealth.” Nevertheless, we have a preference for a specific option.”
Matthew Pines, a National Security Fellow at the Bitcoin Policy Institute, informed Decrypt that central banks are typically conservative institutions by design, which is why advocacy groups promoting the concept of BTC reserves are not particularly surprised by this caution.
“They typically have a restricted legal mandate: financial stability, complete employment, and stable prices,” he contends. “They also regard currencies as a sovereign prerogative and closely guard the legal monopoly that the state has granted them to issue state-backed money.”
Nevertheless, Glapiski’s comments follow a week after the Czech Central Bank authorized a proposal to investigate the feasibility of investing in Bitcoin, despite the current resistance.
After the Czech Central Bank approved a proposal to investigate the feasibility of investing in Bitcoin (BTC) a week ago, Glapinski made the following statement.
However, the study has encountered some resistance within Czechia, with Finance Minister Zbynek Stanjura stating that he would not recommend a national Bitcoin reserve and that he occasionally instructs his colleagues not to think aloud on the microphone. The study is expected to be published in August or September.
The central bank’s deputy governor, Eva Zamrazilov, was compelled to issue public clarifications in response to the criticism. She stated on Czech TV that the study would include other investments in addition to Bitcoin.
She emphasized that the study is more of a study than an indication of policy and that the Bank Board has never discussed such a proposal.
The European Central Bank has also expressed criticism of the potential for Bitcoin reserves. ECB President Christine Lagarde recently criticized BTC in a manner similar to Adam Glapinski.
“There is an agreement among the governing council […] that reserves must be liquid, secure, and safe,” she stated during a press conference.
Impact of USA
However, the mere fact that central banks have begun discussing Bitcoin in this context may indicate a significant change in the climate, with rumors in Europe following the more concrete possibility of a strategic Bitcoin reserve in the US.
President Donald Trump established a working group to investigate the establishment of a Bitcoin reserve within days of his inauguration. More recently, he has advocated for the establishment of a sovereign wealth fund.
In recent days, Utah has introduced a Blockchain and Digital Innovation Amendments measure to its Senate, and nearly one-third of US states are currently examining legislation that would establish their own Bitcoin reserves.
In Matthew Pines’ opinion, disapproval in Poland and the broader European region will not “at all” affect such progress, as the United States may be more interested in maintaining pace with more Bitcoin-friendly jurisdictions.
“The United States is closely monitoring the process of other countries (particularly those in the Gulf and Asia) recognizing Bitcoin as a national asset,” he says.
Also Read: Top US Supreme Court Lawyer Detained After Secret Crypto Moves Worth $6 Million
Wallets