Czech Central Bank Governor Proposes Bitcoin Investment Plan
The head of the Czech National Bank, Ales Michl, has revealed plans to present a proposal for Bitcoin investment to the bank’s board on Thursday. If approved, the central bank could allocate up to 5% of its $146.13 billion in reserves to the world’s largest cryptocurrency by market capitalization, according to an interview published by the Financial Times (FT).
“For diversifying our assets, Bitcoin appears to be a viable option,” Michl stated in the interview, as reported by FT and later cited by Reuters. He highlighted the growing institutional adoption of Bitcoin, particularly following the launch of spot Bitcoin exchange-traded funds (ETFs) by BlackRock and other financial giants a year ago.
“Bitcoin is one of the assets under consideration. It currently has zero correlation to bonds and presents an intriguing opportunity for a large portfolio. It’s worth evaluating,” Michl said in a statement on X (formerly Twitter). However, he emphasized that the discussion is still in its early stages. “At this point, it’s purely an analysis and discussion. The Bank Board will decide, and no immediate decision is expected. A thorough assessment is necessary.”
Michl also acknowledged Bitcoin’s well-known price volatility, which could impact its effectiveness as a reserve asset. “Bitcoin’s volatility makes it challenging to fully leverage its current low correlation with traditional assets. That’s why I will ask our team on Thursday to conduct a deeper assessment of Bitcoin’s potential role in our reserves. Nothing more, nothing less,” he added.
