Czech central bank eyes holding up to 5% of reserves in Bitcoin: report

Governor Aleš Michl plans to offer Bitcoin investment to the Board of Directors of the Czech National Bank, potentially allocating up to 5% of reserves to digital assets.

The governor of the Czech National Bank, Aleš Michl, does not make a daring decision, another western central bank has taken so far: he wants to put Bitcoin (BTC) in the country’s reserves. If it is approved, up to 5% of the 140 billion euros in the Czech National Bank could be allocated to Bitcoin.

Michl plans to present his proposal to the CNB board of directors on January 30, developer The Raphael Minder of the Financial Times that Bitcoin “seems good” for the “diversification” of the assets of the bank.

He recognized the volatility of cryptocurrency but underlined his growing interest in investors, especially after BlackRock, the largest asset manager in the world, spear Spot Bitcoin Exchange negotiated funds in 2024.

“Of course, if you compare my position with other bankers, then I am the one who enters the jungle or the pioneer. I used to manage an investment fund, so I am a typical investment banker, I would say that I like profitability. »»

Aleš Michl

Michl admitted that Bitcoin’s value could go to zero, but also sees its potential because CNB data suggest that if 5% of its reserves had been in Bitcoin in the last decade, annual yields would have increased by 3, 5% points – but volatility would have doubled.

If the plan advances, CNB could become the first Western central bank known to hold Bitcoin, joining El Salvador, which holds 6,048 BTC worth around 619 million dollars, per data Bitcoin vouchers.

The United States, in the meantime, also evaluates the feasibility of the so-called “stocks of national digital assets”. While President Donald Trump recently sign An executive decree to create a working group focused on cryptocurrencies, the order does not suggest that the US government should prioritize Bitcoin holding in its reserves.