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Hungarian Central Bank Rejects Bitcoin for Reserves, Sticks to Traditional Assets

Grand building of the Hungarian Central Bank at sunset with classical architecture

On July 3, 2025, the Magyar Nemzeti Bank (MNB), Hungary’s central bank, announced it will not include Bitcoin or other cryptocurrencies in its reserve assets, doubling down on a conservative financial strategy. The decision, reported by Bloomberg, reflects concerns over crypto volatility and regulatory uncertainty, aligning with the European Central Bank’s cautious stance.

No Crypto in Reserves

MNB officials, including Deputy Governor Csaba Kandrács, emphasized stability, stating, “The central bank is evaluating its international reserve strategy and excludes the possibility of including any crypto assets.” Unlike El Salvador, which holds 5,918 BTC ($698M as of June 30), Hungary prefers traditional assets like gold and foreign currencies. This follows a 2021 rumor of Bitcoin adoption, later debunked, and a 2022 crypto regulatory tightening after MNB’s warnings on unregistered platforms.

Minimal Market Impact

The announcement had no immediate effect on Bitcoin ($114,258) or Ethereum ($4,135) prices, as markets expected such conservatism from European central banks. Hungary’s $48.6 billion in reserves (0.01% in gold) and its focus on forint stability signal a long-term aversion to crypto’s volatility, despite global trends like Switzerland’s $2.6M BTC purchase in 2025.

Broader Implications for Crypto Adoption

Hungary’s stance may slow crypto integration in Central Europe, where skepticism persists. With 64% of global central banks exploring CBDCs but only 6% considering crypto reserves (BIS 2025 survey), MNB’s decision aligns with peers like Germany and France. This could delay Bitcoin’s mainstream adoption as a reserve asset, though pro-crypto policies in the U.S., like Trump’s ventures, may counterbalance regional hesitancy.

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