Czech National Bank Proposes Investing Billions in Bitcoin Reserves
Czech National Bank Governor Aleš Michl proposes investing billions of euros in Bitcoin for the bank’s public reserves, according to the Financial Times. Key points include:
- Proposal aims to diversify the Czech National Bank's (CNB) reserves.
- If approved, up to 5% of total reserves (currently 140 billion euros) could be allocated to Bitcoin.
- This would make the CNB the first major central bank to hold Bitcoin.
- Michl recognizes Bitcoin’s volatility but cites growing institutional interest following BlackRock’s spot Bitcoin ETFs.
- The CNB's investment strategy includes 22% of its portfolio in equities, differing from most central banks.
- Contrasts with other central bankers who view Bitcoin as an unreliable store of value.
- Recent actions by former U.S. President Donald Trump support a national framework for crypto regulation.
- Bitcoin surpassed $100,000 post-Trump election and was the best-performing asset in 2024.
If approved, this proposal could set a precedent for other central banks, potentially legitimizing Bitcoin as a reserve asset.