Czech National Bank Considers €7 Billion Bitcoin Investment, Sparking Debate
Governor Aleš Michl attracted a mixed response after the board of directors of the Czech National Bank (CNB) approved a proposal to analyze the option to invest part of the reserves in Bitcoin (BTC). The product line has about 7 billion euros, which is 5% of the international reserves of CNB that may invest in Bitcoin, and various sectors led by fellow central banks in European countries have reacted differently.
For example, ECB President Christine Lagarde rejected the idea of a group central bank as a strategic reserve asset. Lagarde recently pointed out that Bitcoin does not meet all set standards for including assets in bank reserves.
Additionally, Michl admits that Bitcoin is very turbulent and its value may be zero or very large numbers.
“Of course, if you compare my position to other bankers, I’m the guy who went into the jungle or pioneer. I used to run an investment fund, so I’m a typical investment banker and I want to say, I like to make a profit abilities.” Michl pointed out.
However, the crypto community has been embracing the adoption of Bitcoin as a strategic reserve asset by the Czech National Bank.
Change of rhythm
The Donald Trump administration has sparked a potential revolution in the United States by using emerging technologies led by blockchain and artificial intelligence. 22 states in the U.S. have already introduced a bill to diversify its reserves in Bitcoin, thus giving the federal government the lead.
The mainstream adoption of Bitcoin by institutional investors has convinced more global central banks to consider digital assets in the near future.
Furthermore, despite the headwind caused by the IMF, El Salvador has made great strides in its Bitcoin strategy.
