Czech National Bank Governor Considers Buying Bitcoin To Diversify Reserves

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Insidebitcoin2025/01/07 21:33

By:Insidebitcoin

Czech National Bank governor Aleš Michl is considering investing in Bitcoin as part of a potential diversification strategy for the country’s foreign exchange reserves.

Michl said in an interview with CNN Prima News that he is considering acquiring “a few Bitcoin.”

Czech National Bank Governor Considers Buying Bitcoin To Diversify Reserves image 0

No Plans In Place Yet For The Czech National Bank To Buy Bitcoin

Before the national bank can start buying BTC , it will need to get the approval from its board, which comprises seven members. Janis Aliapulios, one of the advisors to the board, confirmed that the bank is not currently planning a Bitcoin investment when he was asked about a potential acquisition.

Nevertheless, Michl is still open to the idea of the bank diversifying its portfolio through BTC. Until this happens, the bank will continue to invest in gold as part of its current diversification plan. Aliapulios said that the bank aims to increase its holdings in the popular commodity to around 5% of its total assets by 2028.

BTC Could Become A “Safe” Reserve Asset

Michl’s remarks come amid a shift among institutions and governments, who are evaluating whether BTC could be included in their financial strategies, according to author and intergovernmental blockchain expert Anndy Lian.

Lian says there could be a “gradual redefinition of what constitutes a ‘safe’ reserve asset” as more governments and institutions mull an investment in BTC.

In the past, gold has been the go-to asset for portfolio preservation. Looking at the last year, however, Bitcoin has risen more than 131% while gold’s price only climbed 30%, according to TradingView data.

One deterrent is BTC’s high levels of volatility. Lian warned that BTC’s fluctuations could be a “double-edged sword” for national reserves that could lead to broader financial swings.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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European Central Bank President Christine Lagarde said bitcoin is not an option as a reserve asset for the Eurozone’s central bank reserves, citing liquidity, security and regulatory concerns.Meanwhile, the Czech National Bank approved a proposal from Governor Aleš Michl to assess diversifying some of its country’s reserves into bitcoin.

The Block•2025/01/30 21:34

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The Block•2025/01/30 21:34