Czech central bank’s Bitcoin reserve plan may take months, exposure cut to under 1%: report

The Czech Central Bank examines a Bitcoin reserve plan which can take months, with potential exposure which is much lower than the sources initially suggested, according to sources.

Bitcoin of the Czech Central Bank (BTC) The adoption plan may take months to finalize, the exposure should be much lower than the 5% initially suggested.

Governor Ales Michl first launched the idea in a interview with financial time. The proposal triggered excitation in cryptographic space but faced the skepticism of decision -makers. The president of the European Central Bank Christine Lagarde rejected He says that “the reserves must be liquid, that the reserves must be secure, that they must be safe.”

After Michl’s proposal, the Board of Directors of the Czech National Bank in service A study, which will evaluate the feasibility of bitcoin as a reserve ratio. The governor is open to his conclusions, even if they reject the idea. However, Bloomberg sources now say The study can take months. In addition, even if the study supports Bitcoin purchases, the sources indicate that the exposure of the CNB would be less than 1% of the total reserves, far from the “up to 5%” initially declared “until 5%”.

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.