Czech National Bank Plan To Consider Bitcoin as a Foreign Reserve Asset
The Czech National Bank (CNB) is considering Bitcoin as part of its foreign exchange reserve diversification strategy, a move that signals central banks’ growing interest in digital assets. Governor Aleš Michl revealed that the idea of buying small amounts of Bitcoin is on the table, sparking curiosity about the bold move. At the time of this announcement Bitcoin has surpassed $102,000reaching its highest point in three weeks.
Czech National Bank considers setting up Bitcoin reserve fund
in a Terezia Tomankova Party Program Interview During a live broadcast on CNN Prima News, Michl shared a proposal to purchase small amounts of Bitcoin as part of bank reserves.
However, he clarified that this is just an idea at the moment and not a firm plan. Any decision to purchase Bitcoin requires approval from CNB’s seven board members.
While emphasizing that this is not a large-scale investment plan, Michel said, “I’m thinking about Bitcoin,” indicating that discussions are ongoing.
Despite the potential inclusion of Bitcoin, the CNB still prioritizes gold for its reserves. Currently, CNB holds about 50 tons of gold and plans to double this amount to 100 tons by 2028. This would make gold account for 5% of the bank’s total assets.
Michel further pointed out that gold is a safe and reliable asset, especially in times of uncertainty in global markets.
Why Bitcoin is a Better Choice?
Given Bitcoin’s strong performance over the past year, attention has been paid to its value Growth of more than 128% in 2024, Gold, on the other hand, rose 31%. This makes Bitcoin an attractive reserve option.
However, the price of Bitcoin can be very difficult to predict. Michel calls this a “double-edged sword,” meaning it can bring risks as well as rewards.
Experts believe that if central banks like the Central Bank start using Bitcoin, it could change the way reserves are managed. Blockchain Expert Andy Lian Says Bitcoin may bring a more digital and decentralized way to ensure financial stability.
