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CryptoIntelligence 2025-01-07 19:34:00

Czech National Bank Governor Explores Bitcoin as Reserve Asset

Aleš Michl, governor of the Czech National Bank (CNB), has expressed interest in Bitcoin as a potential diversification strategy for the country’s foreign exchange reserves, signaling growing government consideration of cryptocurrency as a savings tool. In an interview with CNN Prima News , Michl stated he was considering acquiring “a few Bitcoin” for diversification, though it would not constitute a major investment for the bank. The CNB board, composed of seven members, would need to approve any decision to acquire Bitcoin. Janis Aliapulios, an adviser to the board, clarified that the bank currently has no plans to invest in Bitcoin. “To sum up, CNB is now not considering buying crypto assets for its reserves. However, Governor Michl did not rule out further future debate on this topic,” Aliapulios told Cointelegraph . The bank will continue its diversification efforts through increased gold purchases, with plans to raise gold holdings to 5% of total assets by 2028, Aliapulios added. Bitcoin’s robust returns have made it an attractive potential reserve asset alongside gold. Over the past year, Bitcoin prices surged over 131%, compared to gold’s 30% rise, according to TradingView data. Michl’s comments indicate a growing trend among governments and institutions reassessing financial strategies to include Bitcoin. Anndy Lian, blockchain expert and author, remarked, “As more countries ponder this path, we might see a gradual redefinition of what constitutes a ‘safe’ reserve asset. If Bitcoin becomes a staple in national reserves, it could fundamentally alter the landscape of global finance, pushing for more decentralized and digital approaches to economic stability.” However, Lian also noted Bitcoin’s price volatility could be a “double-edged sword” for national reserves, potentially causing financial fluctuations. In the United States, Bitcoin’s status as a savings technology continues to gain traction. The Bitcoin Act, proposed by Senator Cynthia Lummis, advocates for a strategic Bitcoin reserve, further advancing its recognition as a reserve asset.