Czech National Bank Approves Proposal to Assess Bitcoin and Other Asset Investments
In the latest development, the Czech National Bank Board approved a proposal on Thursday to analyze the choice of investing in other asset categories (including Bitcoin).
CNB is in statement As part of its reserve management strategy, the central bank has been increasingly diversified in the past two years. The same is true of other asset categories in the reserve. “It pointed out.
After analysis, the board decides the next step
The board of directors stated that after analyzing the situation, it will decide the next step, and it will not change until then. Any changes in the reserve portfolio will be disclosed in the quarterly information about CNB international reserve and CNB annual report. It is worth noting that if Bitcoin is added, CNB will be the first central bank to hold it.
CNB Governor Alecmichl recently announced a plan to launch BTC reserves, calling it to change the rules of the game. The goal of the State Bank is to invest at least 5 % of its 140 billion euros to Bitcoin. Michl recognizes the fluctuations and short history of Bitcoin, but pointed out that after the launch of Blackrock and other companies to launch the US Bitcoin ETF, investors have continued to grow interest, and President Trump in the relaxation of cryptocurrencies and creating Bitcoin reserves Promise.
Worried about the fluctuation and security of Bitcoin
However, the Minister of Finance’s instability and fluctuations of Bitcoin expressed concerns. He believes that because Bitcoin is not suitable as a national reserve, because of its high nature and emphasizing that the government cannot cover CNB decisions.
In addition, Christine Lagarde, President of the Central Bank of Europe, said on Thursday that Bitcoin is not a feasible choice for the reserve in the euro area reserve, because of liquidity, security and regulations. However, the Czech Republic is not part of the euro area.
However, the Czech National Bank explored Bitcoin as part of its reserve strategy as part of its reserve strategy marks a bold step towards diversified. The decision will be carefully analyzed. If it is approved, it may set a precedent for other central banks, and CNB may become the first person to hold Bitcoin in its reserves.
