Key Takeaways
- CNB Governor Aleš Michl is considering Bitcoin for his foreign exchange reserve strategy.
- The CNB is currently focusing on gold in order to achieve low inflation and financial stability.
Czech National Bank (CNB) Governor Aleš Michl is considering adopting bitcoin as part of a strategy to diversify the bank’s foreign exchange reserves, although there are no plans for an immediate acquisition.
“I have Bitcoin in my head, but our strategy now is low inflation, financial stability,” said Michl u an interview with Partie Terezia Tomankova on CNN Prima News.
The CNB currently maintains its focus on traditional assets such as gold, stocks and bonds, which make up the largest part of the bank’s reserves, says Michl. The governor noted that he was considering buying “a few bitcoins” instead of making significant investments.
“I was thinking about Bitcoin, but there are seven of us on the bank’s board. “I think gold will be enough now, but we can continue to talk about it,” Miehl said.
He called bitcoin a “very interesting” asset, but highlighted the uncertainty surrounding its underlying technology.
CNB currently holds 50 tons of gold and plans to double its holdings to 100 tons in the next three and a half years.
“We will have 30 percent stocks, we have bonds, we have cash deposits and we have gold.” So that’s it,” Michl discussed the bank’s reserve strategy.
Bitcoin has gained 131% over the past year, outpacing gold’s roughly 30% gain, according to TradingView.
Several nations have explored bitcoin reserve initiatives. In November last year, Eros Biondini, a Brazilian lawmaker, proposed the establishment of a national bitcoin reserve to strengthen Brazil’s economic defenses against currency volatility and geopolitical threats.
Last month, Japanese MP Satoshi Hamada questioned the government about establishing a national bitcoin reserve, while Russian State Deputy Anton Tkachev called for similar considerations.
Vancouver City Council recently approved A “Bitcoin-friendly” movement that involves converting part of its financial reserves.
In North America, multiple US states, including Texas, Alabama, and Pennsylvania, have moved toward bitcoin reserve accounts. The US is expected to see a national initiative led by Trump soon.
Although the Czech Central Bank has no immediate plans to buy bitcoins, the country is taking big steps to create a more favorable environment for crypto investments.
Czech Parliament recently approved the amendment capital gains tax exemption on Bitcoin and other crypto assets held for more than three years. The move is in line with EU regulatory frameworks and aims to encourage participation in the crypto market.
