Czech National Bank governor considers Bitcoin for future reserves

Czech National Bank Governor Aleš Michl recently indicated the possibility of adding Bitcoin (CRYPTO:BTC) to the country's foreign exchange reserves as part of a diversification strategy.

In an interview with CNN Prima News, Michl mentioned the idea of acquiring “a few Bitcoin” for diversification, noting that such an investment would not be significant for the bank.

Any decision to invest in Bitcoin would require approval from the Czech National Bank’s board, which consists of seven members.

Janis Aliapulios, an adviser to the board, clarified that there are no current plans to invest in Bitcoin.

However, Aliapulios stated that Michl remains open to future discussions on the matter.

“To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic,” Aliapulios stated.

In the near term, the Czech National Bank plans to diversify its reserves by increasing gold holdings, aiming for approximately 5% of its total assets in gold by 2028.

Bitcoin’s performance in the past year has raised discussions about its potential as a reserve asset.

Bitcoin saw a rise of over 131% in the past year, compared to a 30% increase in gold prices, according to TradingView data.

Anndy Lian, an intergovernmental blockchain expert, believes that Bitcoin could reshape global finance, especially as more governments reconsider their financial strategies.

“As more countries ponder this path, we might see a gradual redefinition of what constitutes a ‘safe’ reserve asset,” Lian noted.

However, he also pointed out that Bitcoin’s price volatility could present risks for national reserves.

Meanwhile, the United States is also considering Bitcoin as a reserve asset.

The Bitcoin Act, supported by Senator Cynthia Lummis, proposes the creation of a strategic Bitcoin reserve.

With bipartisan backing, the proposal is gaining traction and could be passed during the next four years.

At the time of reporting, the Bitcoin (BTC) price was $96,911.16.