Key Takeaways
- Czech National Bank may consider Bitcoin for reserve diversification.
- The bank plans to increase gold holdings to 5% by 2028.
- Bitcoin's 131% annual return outpaced gold's 30% rise in 2024.
Aleš Michl, governor of the Czech National Bank (CNB), revealed that Bitcoin could be part of the bank’s diversification strategy for its foreign exchange reserves.
While not an immediate priority, Michl suggested acquiring “a few Bitcoin” as a potential move for the future.
Board approval process
The decision would require approval from the bank’s seven-member board, but currently, there are no active plans to include Bitcoin in reserves.
Janis Aliapulios, an advisor to the board, clarified:
CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic.
Current reserve strategy
In the short term, the CNB will focus on increasing its gold holdings to 5% of its total assets by 2028.
Bitcoin, with a 131% rise over the past year compared to gold’s 30% gain, remains a potential addition to the bank’s diversification portfolio.
Global perspective
Michl’s comments align with broader global interest in Bitcoin as a reserve asset.
Analysts like Anndy Lian suggest its adoption by central banks could redefine financial stability strategies, though Bitcoin’s volatility poses significant challenges.
U.S. developments
The growing conversation in Europe echoes developments in the U.S., where Senator Cynthia Lummis is advocating for a national Bitcoin reserve through the Bitcoin Act.
With bipartisan support, states like Texas and Pennsylvania are considering similar strategic reserves.
