Czech Central Bank Governor Proposes Massive Bitcoin Investment
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In a groundbreaking move, Czech National Bank (CNB) Governor Aleš Michl has announced plans to propose a significant investment in Bitcoin, potentially allocating up to 5% of the bank’s reserves to the cryptocurrency.
This bold strategy, if approved, would involve purchasing approximately €7 billion ($7.3 billion) worth of Bitcoin, making the CNB the first major central bank to adopt cryptocurrency as part of its reserves.
Michl is set to present this proposal to the CNB board today.
The governor acknowledges Bitcoin’s extreme volatility and limited track record but sees it as a valuable asset for portfolio diversification.
He cites growing investor interest, particularly following the launch of Bitcoin ETFs by major firms like BlackRock in 2024.
The proposed investment would represent about 5.3 months of newly mined Bitcoin supply, potentially impacting the cryptocurrency market significantly.
This move aligns with recent developments in the US, where President Donald Trump has pushed for deregulation in the crypto sector and issued an executive order to study the creation of a national digital asset stockpile.
While the CNB had previously announced plans to increase its gold holdings to 5% of total assets by 2028, this Bitcoin proposal marks a dramatic shift in strategy.
The bank’s current portfolio already stands out among central banks, with 22% invested in equities.
As the cryptocurrency community eagerly awaits the board’s decision, this proposal could mark a pivotal moment in the integration of digital assets into traditional financial institutions.
If approved, the Czech National Bank would position itself at the forefront of a potential new era in central banking and reserve management.
Sources: FT, PYMNTS, Investing.com