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The Coin Rise 2025-01-29 14:15:37

Czech National Bank Eyes Historic $7.3 Billion Bitcoin Investment

The Czech National Bank (CNB) may become the first central bank in Europe to directly invest in Bitcoin as part of its foreign exchange reserve diversification strategy. Governor Aleš Michl is preparing to present the Bitcoin acquisition plan to the bank’s board on January 30, potentially setting the stage for a $7.3 billion investment. If the proposal is approved, it would signal a groundbreaking shift in financial strategies among European central banks. André Dragosch, head of research at Bitwise, noted the magnitude of such a move, explaining that it would represent nearly 5.3 months of newly mined Bitcoin supply entering the CNB’s reserves. Czech Strategic Reserve Diversification Governor Michl previously hinted at the potential move three weeks ago, mentioning an interest in acquiring “a few Bitcoin” to diversify the nation’s reserve assets. The CNB currently holds over $146 billion in total reserves. Despite skepticism from some corners, the central bank seems focused on new asset classes for long-term stability. In early January, CNB adviser Janis Aliapulios stated that the institution was instead planning to raise its gold holdings to 5% of total assets by 2028, dismissing Bitcoin investment rumors at that time. However, the latest proposal, if passed, would mark a significant pivot from traditional reserve strategies towards embracing digital assets alongside gold. Global Implications Amid Regulatory Shifts The potential Bitcoin acquisition by CNB aligns with increasing global interest in crypto investments amid shifting regulatory landscapes. Notably, Michl pointed to U.S. President Donald Trump’s administration as a factor bolstering Bitcoin momentum, suggesting that regulatory clarity in the U.S. could further fuel institutional interest. Meanwhile, analysts predict Bitcoin could reach as high as $110,000 by January 2025 despite a potential interim correction to $70,000. Raoul Pal, CEO of Global Macro Investor, remains bullish, forecasting prices between $160,000 and $180,000 within the same time period. The post Czech National Bank Eyes Historic $7.3 Billion Bitcoin Investment appeared first on TheCoinrise.com .

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