The head of the Czech National Bank, Aleš Michl, is set to take a bold step that no Western central bank has taken before – he wants to include Bitcoin in the country’s reserves. If approved, up to 5% of the Czech National Bank’s €140 billion in assets could be invested in BTC.
Mikhl plans to present his proposal to the bank's board on January 30, telling the Financial Times that Bitcoin is suitable for diversifying the bank's assets. He acknowledged the volatility of the flagship cryptocurrency, but recalled the growing interest in it from large investors.
Of course, if you compare my position with other bankers, I am the one who enters the jungle, or the pioneer. I used to manage an investment fund, so I am a typical investment banker, and I would say I like the principle of profitability, - said Mikhl.
According to an analysis by the Czech National Bank, if 10% of reserves had been invested in bitcoins over the past 5 years, the institution’s annual profitability would have increased by 3,5 times.
If Michl's plan is implemented, the Czech central bank will become the first Western central bank to own Bitcoin.
Although President Donald Trump recently signed an executive order creating a task force focused on cryptocurrencies, the document does not say that the US government should prioritize holding bitcoin in its reserves.
