Czech National Bank Governor Ales Michl announced plans to add Bitcoin (BTC) to the nation’s reserve.
Michl told Financial Times in a recent interview that he planned to present a Bitcoin accumulation plan to the Chech Central Bank’s board today. If the plan is approved, the institution will convert 5% of its $146.13 billion reserves to Bitcoin. He said:
“For the diversification of our assets, Bitcoin seems good.”
The details
Mohl highlighted investor interest in the cryptocurrency industry having markedly increased ever since BlackRock and other trusted financial institutions released crypto spot exchange-traded fund (ETF) products. He wrote in a recent X post:
“An asset under consideration is Bitcoin. It currently has zero correlation to bonds and is an interesting asset for a large portfolio. Worth considering. Right now, it’s only at the stage of analysis and discussion. The Bank Board decides, and no decision is imminent. Thoughtful analysis is needed.”
Mohl admitted that Bitcoin brings with it great volatility, “which makes it harder to take advantage of its current low correlation with other assets.” Still, he thinks it is worth investigating:
“That’s why I will ask our team on Thursday to further assess Bitcoin’s potential role in our reserves. Nothing more, nothing less.”
Following United States president Donald Trump’s campaign promises to create a Strategic Bitcoin Reserve, there has been much talks around the world about doing the same. Some analysts suggest that 2025 will be the year when multiple central banks and nations will buy Bitcoin for the first time.
The first discussions around this started in Brazil’s congress back in November 2023, when Brazilian Congressman Eros Biondini proposed for the nation to create its own Bitcoin. Similarly, major Canadian city Vancouver gave the green light to study Bitcoin’s integration in the local financial system and a potential reserve in December 2024.