Czech National Bank On Jan. 30, the company will explore whether Bitcoin (BTC), which is a digital currency, can be included in its reserves. The move comes despite European Central Bank (ECB) President Christine Lagarde’s vocal opposition to central banks holding the crypto.
At a meeting on January 30, the CNB Bank Board of Directors reviewed and approved an international reserve management document for 2024. It also approved proposals to evaluate additional asset categories as possible investment opportunities.
The announcement reads:
“The CNB has been actively diversifying its investments over the last two years as part of a broader reserve management strategy. The Bank Board will evaluate whether expanding into other asset classes aligns with our diversification and return objectives.”
The decision by certain European authorities to examine Bitcoins does not necessarily translate into an immediate investment. However, this indicates a growing openness towards digital assets.
CNB confirms that they will not make changes to their reserves before a comprehensive review has been conducted. The findings will guide the board’s future decisions on reserve allocation. Any updates to reserve portfolios will be disclosed in CNB’s quarterly reports and annual financial statements.
The announcement is notable for its confirmation. CNB considered allocating as much as 5% (over $7 billion) of its reserve to BTC.
Michl also said In an interview on Jan. 6, CNN Prima News has reported that Bitcoins are a booming business. “very interesting thing”The ‘and provides a “very interesting”If its code is what it advocates, then diversification can be done against other assets.
ECB against
The CNB’s exploratory approach contrasts sharply with the stance of European Central Bank (ECB) President Christine Lagarde, who recently warned against central banks holding Bitcoin.
Lagarde made the following statement during a presentation to ECB member banks:
“I think there is a view around the table of the governing council, and most likely the General Council as well, that reserves have to be liquid, that reserves have to be secure, that they have to be safe, that they should not be plagued by the suspicion of money laundering or other criminal activities.”
She also expressed confidence that Bitcoin would not enter the reserves of any central bank on the ECB’s General Council. However, Aleš Michl is a member of the group.
Lagarde addressed the issue in her address.
“I had a good conversation with my colleague from the Czech Republic, and I will leave it to him to make whatever announcement he wants to make. But I am confident that he is convinced, as we all are, of the necessity to have liquid, secure, and safe reserves.”
The global movement to integrate Bitcoin into national currencies is in full swing. Donald Trump was President last week The Executive Order was signed Allowing a newly-formed cryptoworking group to evaluate and possibly establish a cryptocurrency stockpile.
Meanwhile, Coinbase CEO Brian Armstrong Recently said A G20 country will look at a Bitcoin currency reserve during the World Economic Forum if US pushes through.
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