NBP Emphasizes Security Over Volatility
The National Bank of Poland has now ruled out the possibility of adding Bitcoin to its reserves on account of significant security concerns. During a news conference, reports the Warsaw Business Journal, the President of NBP and Chairman of Monetary Policy Council Adam Glapiński stated that the reserve assets have to be absolutely secure.
Glapiński said, “We won’t even think about Bitcoin in any circumstances, because the reserve should be perfectly safe.”
The position of the central bank comes against the backdrop of increasing global debate over whether Bitcoin can be used as a reserve asset. As some countries have explored ways to incorporate digital assets into their financial systems, Poland remains resolute in its traditional approach, putting stability over possible high-risk rewards.
Poland’s Reserve Strategy
Currently, NBP’s reserves consist mainly of gold, U.S. dollars, and euros. The bank has strategically increased its gold holdings over the years to take advantage of rising gold prices and global economic uncertainties. According to Glapiński, such purchases have significantly strengthened Poland’s financial position.
The Polish case reflects a more general trend among international central banks: investment in gold. For many financial institutions, gold is a hedge against inflation and geopolitical risks. Bitcoin, though its usage is growing, is extremely volatile and subject to dramatic price swings based on speculation, regulatory news, and overall market sentiment.
Glapiński repeated that Bitcoin is too volatile to be held in reserves. Unlike other assets, Bitcoin does not have a central authority behind it, which makes it more prone to extreme fluctuations in value.
NBP’s Longstanding Caution on Bitcoin
In fact, NBP’s misgivings about Bitcoin are not at all new. In 2017 the bank, in cooperation with the Financial Supervision Authority, issued a warning regarding the risks of virtual currencies. The authorities warned that cryptocurrencies were neither emitted nor guaranteed by any central institution, could not be treated as legal tender and their investors are at risk of losing money due to fraud, theft or extreme fluctuations of value.
So far, the government of Poland has maintained a conservative approach toward digital assets with strengthened measures of regulation for preventing financial instability and criminal activities. While Poland hasn’t prohibited trading in cryptocurrency, it doesn’t recognize digital assets as legal, circulating currency.
NBP’s latest statement cements Poland’s commitment to traditional monetary policies oriented toward security and predictability rather than digital means of innovation like Bitcoin.
