Czech Central Bank Considers Historic Bitcoin Investment to Diversify Reserves
Czech National Bank (CNB) Governor Aleš Michl is proposing a groundbreaking move—investing billions of euros in Bitcoin to diversify the country’s reserves, according to the Financial Times.
Michl plans to present the proposal to the CNB board, suggesting that up to 5% of the bank’s €140 billion in reserves be allocated to Bitcoin. If approved, this would make the CNB the first major central bank to hold Bitcoin, signaling a significant step in mainstream crypto adoption.
While acknowledging Bitcoin’s volatility, Michl pointed to increasing institutional interest, particularly after BlackRock’s launch of spot Bitcoin ETFs. He also noted former U.S. President Donald Trump’s pro-crypto stance and the growing influence of digital asset advocates in Washington.
The CNB has already taken a more unconventional investment approach than most central banks, holding 22% of its reserves in equities rather than just bonds and cash. This willingness to embrace higher-risk assets could make Bitcoin a logical next step.
Michl’s proposal contrasts sharply with the stance of other major central banks. Federal Reserve Chair Jerome Powell recently stated that the Fed has no plans to hold Bitcoin, while the European Central Bank continues to argue that Bitcoin has no intrinsic value. Meanwhile, El Salvador—the first country to adopt Bitcoin as legal tender—has scaled back its Bitcoin plans under pressure from the International Monetary Fund.
Despite skepticism, Bitcoin has surged past $100,000 following Trump’s election victory and was the best-performing asset of 2024, outpacing major stock indices.
If the CNB moves forward with this investment, it could set a precedent for other central banks and further cement Bitcoin’s role as a global reserve asset. The financial world is now watching to see if the Czech Republic will take this bold step.
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