tl;dr
The Czech National Bank (CNB) is considering allocating up to 5% of its $146.13 billion reserves to Bitcoin, surpassing its gold holdings. Governor Aleš Michl sees Bitcoin as a diversification tool amid rising institutional adoption and shifting US policies. Despite acknowledging the volatility, he ...
Czech National Bank (CNB) Governor Aleš Michl is proposing adding Bitcoin to the country’s reserve assets, potentially allocating up to 5% of its $146.13 billion reserves to Bitcoin. The CNB sees Bitcoin as a diversification tool amid rising institutional adoption, citing growing interest in crypto-related investment products and shifting US policies.
Despite the volatility, Michl believes Bitcoin's rising adoption justifies its inclusion in national reserves, emphasizing the CNB’s experience in managing fluctuating assets.
The Czech National Bank (CNB) is considering allocating up to 5% of its $146.13 billion reserves to Bitcoin, surpassing its gold holdings. Governor Aleš Michl sees Bitcoin as a diversification tool amid rising institutional adoption and shifting US policies. Despite acknowledging the volatility, he believes in Bitcoin's long-term potential and the CNB's ability to manage fluctuating assets.
Czech National Bank (CNB) Governor Aleš Michl will reportedly propose adding Bitcoin to the country’s reserve assets, Financial Times reported on Jan. 29. If approved, his plan would see the bank eventually allocate as much as 5% of its $146.13 billion reserves to Bitcoin, moving beyond its traditional gold and US dollar holdings.
Bitwise’s European Head of Research, André Dragosch, said the proposed investment could amount to $7.3 billion in Bitcoin. This would place CNB’s BTC reserves above its $4.3 billion gold holdings and account for roughly 5.3 months of newly mined Bitcoin.
CNB’s Michl sees Bitcoin as a diversification tool amid rising institutional adoption. He pointed to growing interest in crypto-related investment products, particularly after asset managers like BlackRock launched BTC exchange-traded funds (ETFs). He also noted shifting US policies, including President Donald Trump ‘s deregulation efforts and increased engagement between crypto firms and policymakers.
Although Bitcoin remains volatile, Michl believes its rising adoption justifies its inclusion in national reserves. He acknowledged the risks but emphasized the CNB’s experience in managing fluctuating assets.
For the diversification of our assets, Bitcoin seems good… Those guys can now kind of create some bubble for bitcoin, but I think the trend would be an increase without those guys as well, because it’s an alternative for more people," Michl said.
“It’s possible to have a big range of outcomes, that bitcoin will have a value of zero or an absolutely fantastic value, but in our history we have also had some stocks like Enron or the payment company Wirecard, so we have some experience with bad investments, so, yes, I’m ready,” he said.