Deputy Przemysław Koperski (Left) wrote a parliamentary question on the cryptocurrency market in December 2020. In it, he asked the Polish government a few questions about the regulation of the digital currency market or actions educating Poles on the subject of crypto assets. He also asked the NBP if they were planning to buy Bitcoins. He just got a reply.
The deputy asks, the authority replies
As we learn from answers to an interpellation, UKNF is currently running “Work on a proposal for regulatory changes that will allow the introduction of a minimum level of protection for customers and the financial market”. It is probably about creating a register of entities that offer cryptocurrency trading.
– These activities include both the issues of the functioning of exchanges and cryptocurrency exchange offices as well as the possibilities and rules on which it will be allowed in relation to financial institutions – says Piotr Patkowski, Undersecretary of State in the Ministry of Finance. – Currently, the vast majority of entities involved in the exchange of crypto assets (exchanges or exchange offices) do not conduct activities that are subject to the supervision of the Commission [Nadzoru Finansowego]. In case of legal and regulatory doubts related to a specific operating model, these entities may obtain support from the KNF through the Innovation Hub Program – added.
The NBP does not want BTC because it has an unstable exchange rate.
How are the matters regarding the purchase of BTC by the NBP? Here the answer is a bit surprising with the logic used.
“In terms of the use of crypto assets in the context of maintaining foreign exchange reserves, I would like to point out that in accordance with Art. 52 sec. 1 of the Act on the National Bank of Poland, the central bank collects and manages foreign exchange reserves, and also takes steps to ensure the security of foreign exchange transactions and the country’s liquidity. For this reason, when managing foreign exchange reserves, The NBP strives to ensure the safety of the invested funds and their necessary liquidity, and under these conditions, to maximizing the long-term return rate expressed in PLN. Due to the specificity of cryptocurrencies – in particular, very high price volatility, operational risk, including technology, and reputation risk – investments in this market are not taken into account in the process of managing foreign exchange reserves “
– says the Ministry of Finance.
The problem is that – as some Wall Street entities have already noted – Bitcoin can help NBP in “Maximizing the long-term rate of return expressed in zloty”. So why is the central bank afraid of such an investment?
However, this is not the end. The authorities also boast that … they scare Poles in the matter of cryptocurrencies, instead of honestly educating them (informing, for example, what Bitcoin, blockchain, Ethereum is and where the value of such assets comes from).
“With regard to educational activities related to the discussed matter, first of all, attention should be paid to the joint campaign prepared by the UKNF and the Police Headquarters in 2020. NOTE! Cybercriminal. (…) In 2018, the KNF Office also carried out a nationwide social campaign – “And who will you be when the bubble bursts?” The campaign partners were the Ministry of Finance, the National Bank of Poland and the Police. (…) In 2017, NBP and the UKNF also conducted an information campaign warning against the risks associated with investing in cryptoactives “
– written in the document.