Czech National Bank Governor Aleš Michl is advocating for a significant change. He wants to invest billions of euros in Bitcoin as part of the country's public reserve. Michl plans to allocate up to 5% of the bank's 140 billion euro reserves to Bitcoin.
The proposal will be presented to the central bank board. The goal is to diversify CNB's reserves, making CNB the first major central bank to own Bitcoin.
Michl mentions increased institutional interest, particularly following the debut of BlackRock's spot Bitcoin ETFs. He also highlights Trump's pro-crypto position and the growing number of crypto proponents in his administration. The CNB already distinguishes itself with its investment strategy. They hold 22% of the portfolio in equities and are more receptive to riskier investments.
This approach stands in direct contrast to the views of other central bankers. Many people regard Bitcoin as an untrustworthy store of value. The Federal Reserve and European Central Bank have no plans to hold Bitcoin. If accepted, this action may create a precedent for other central banks. It may strengthen Bitcoin's position as a reserve asset. The financial world is paying careful attention as the CNB examines this historic decision.
