Czech Governor to Pitch Bitcoin Reserve Plan to Central Bank Board

The Czech National Bank (CNB) is considering potentially allocating up to 5% of its reserves, worth around $7.3 billion, to the cryptocurrency.

CNB Governor Ales Michl cited Bitcoin as a good option for diversifying assets. “For the diversification of our assets, bitcoin seems good,” he said. He sees this development as a way to make the Czech National Bank reserves more diverse. 

He will present his acquisition plan to the bank’s board meeting on Thursday, January 30th, as he told the Financial Times.

Trump’s Crypto Regulation Set To Spark Bitcoin Surge

The proposed investment plan comes on the heels of Bitcoin’s record high earlier this month, driven by the U.S. market regulator’s approval of exchange-traded funds tied to its spot price and the hope of easing regulatory hurdles under U.S. President Donald Trump. 

Many central banks still view BTC as a risky investment, but some commercial banks and pension funds have begun including cryptocurrencies in their portfolios.

Therefore, with Bitcoin now ranked 7th among the world’s top assets, with a market cap of $2 trillion, Michl believes that BTC is a crucial asset for central banks to invest in.

Also, this move of Ales Michl with bitcoin would make the Czech National Bank (CNB), the first European central bank to diversify its foreign exchange reserves by investing in Bitcoin.

CNB Bitcoin Investment Benefits 

Approval of this request could mean over $7.3 billion in Bitcoin purchases, considering the Czech National Bank’s (CNB) total reserves exceed $146 billion, according to Bitwise research head André Dragosch.

This development reflects a growing trend of governments and central banks exploring the potential of Bitcoin as a strategic reserve asset. Other countries, such as Brazil and Russia, are also considering similar investments. 

In addition to the Bitcoin investment plan, Michl hinted at a possible interest rate cut of 25 basis points next week, citing it as “very likely”. The Czech National Bank’s consideration of Bitcoin as a reserve asset marks a significant development in the cryptocurrency’s growing adoption and recognition as a legitimate investment option.