Czech Central Bank Head Wants To Buy Bitcoin With 5% Reserve Allocation The Czech National Bank (CNB) is considering a 5% Bitcoin allocation, surpassing its gold reserves. If approved, this move could reshape the future of national reserve assets.
The Czech National Bank (CNB) is contemplating a groundbreaking shift in its investment strategy by considering the allocation of up to 5% of its reserves into Bitcoin. This potential move, led by Governor Aleš Michl, could position the CNB as the first major central bank in the West to hold digital assets.
Key Takeaways
- The CNB may invest up to 5% of its €140 billion ($146.13 billion) reserves in Bitcoin.
- Governor Michl emphasizes Bitcoin’s potential for diversification despite its volatility.
- The proposal is set to be presented to the bank’s board for approval on January 30, 2025.
A Shift Towards Bitcoin
Governor Aleš Michl has expressed a desire to diversify the CNB’s asset portfolio, highlighting Bitcoin as a viable option. In an interview, he stated, “For the diversification of our assets, Bitcoin seems good.” This statement reflects a growing trend among financial institutions to explore BTC as an alternative investment.
The proposed investment could amount to approximately €7 billion ($7.3 billion) in Bitcoin, which would surpass the CNB’s current gold holdings of €4.3 billion. If approved, this allocation would represent a significant shift from traditional reserve assets, which typically include gold and U.S. dollars.
source : https://bitcoinmagazine.com