Key Takeaways
- Czech National Bank Governor Aleš Michl supports studying Bitcoin.
- The CNB is considering a test portfolio to explore Bitcoin as a reserve asset.
- A potential $7.3 billion Bitcoin investment could make the CNB the first European central bank to hold Bitcoin.
Michl stated on Feb. 19 that Bitcoin should not be feared but rather examined for its unique properties, emphasizing that central banks could benefit from understanding its technology.
He wrote:
We central bankers should study it and explore the technology it is built on. Studying Bitcoin won’t harm us—on the contrary, it will strengthen us.
Test portfolio proposal
This statement follows Michl’s proposal on Jan. 30 to create a Bitcoin “test portfolio” for the CNB, aimed at gaining firsthand experience with the asset.
While still in the early stages, the study could lead to Bitcoin being considered for the central bank’s reserves.
Bitcoin evaluation
Michl has been evaluating Bitcoin as a potential reserve asset since Jan. 7, considering an initial purchase for diversification.
Bitcoin’s 130% returns in 2024 have drawn the attention of major financial institutions and investment funds.
Potential investment
The CNB is also weighing a potential $7.3 billion Bitcoin investment, representing around 5.3 months of newly mined supply.
If approved, the CNB would be the first European central bank to allocate reserves to Bitcoin.
Market context
However, Michl stressed that the final decision will be based on thorough analysis.
Meanwhile, global trade tensions, particularly U.S.-China disputes, continue to create uncertainty in financial markets, with Bitcoin showing resilience despite these pressures.
