As part of the bank’s diversification strategy, Aleš Michl, the Czech central bank governor, recently stated that he was considering investing in Bitcoin.
Aleš Michl, the governor of the Czech National Bank, has examined Bitcoin as a possible way to diversify the nation’s foreign exchange reserves, indicating the government’s growing interest in cryptocurrencies as a savings tool.
In an interview with CNN Prima News, Michl stated that he was considering buying “a few Bitcoins” for diversification, even though it wouldn’t be a significant investment for the bank.
Any decision to buy Bitcoin would require approval from the seven-member board of the Czech National Bank.
The bank is not currently contemplating a BTC $100,679 investment, according to board adviser Janis Aliapulios, who was questioned about a possible acquisition. Michl is still willing to consider diversifying his future Bitcoin holdings.
In conclusion, CNB no longer considers purchasing cryptocurrency assets for its reserves. Governor Aleš Michl did not, however, rule out more discussion on this subject in the future, Aliapulios said.
Aliapulios stated that the bank intends to expand its gold holdings to roughly 5% of its total assets by 2028 and will continue its diversification strategy through gold purchases shortly.
Given its strong annual returns, BTC may become a substantial reserve asset on par with gold. According to TradingView data, Bitcoin has increased by over 131% over the past year, while gold prices have increased by over 30%.
According to a December 13 Cointelegraph report, Bitcoin’s 130% annual gains happened when corporate executives sold stocks at unheard-of levels—six sellers for every buyer.
According to author and international blockchain specialist Anndy Lian, Michl’s comments point to a growing trend of governments and institutions reassessing their financial strategy to incorporate BTC:
“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, according to Lian, the price volatility of Bitcoin might also be a “double-edged sword” for national reserves, potentially causing more significant financial fluctuations.
The US Bitcoin Act could strengthen BTC’s standing as a savings technology.
Bitcoin’s reputation as a savings technology in the US is also growing. The Bitcoin Act, supported by Senator Cynthia Lummis of Wyoming, is one of the most anticipated measures for cryptocurrency. It calls for the establishment of a strategic Bitcoin reserve.
According to Anastasija Plotnikova, co-founder and CEO of Fideum, the US President-elect Donald Trump’s victory in the November 2024 election and the new Republican Party Senate majority are helping to increase support for the BTC reserve idea significantly.
The law might be approved throughout the following four years if it receives bipartisan support. “Moodum is growing at the state level, with programs like Pennsylvania’s Bitcoin Strategic Reserve Act acting as a template for wider adoption,” Plotnikova stated.
Democratic Party Representative Ro Khanna, the first Democratic politician to advocate a BTC reserve, was among others from both political parties who supported the idea of a strategic BTC reserve.
Pennsylvania and Texas have also put up such plans.
According to Adam Back, co-founder and CEO of Blockstream, the creator of Hashcash and one of the most prominent cryptographers, BTC may cost more than $1 million if US politicians approve the BTC Act.
