Czech National Bank (CNB) Governor Aleš Michl will reportedly propose adding Bitcoin to the country’s reserve assets, Financial Times reported on Jan. 29.
The bank would eventually be required to allocate up to 5 percent of its reserves, which total $146.13 Billion, towards Bitcoin. It will also move beyond the traditional holdings in gold and US Dollars.
Earlier this month, he hinted at potential adjustments to the bank’s reserve strategy, suggesting a broader approach to asset allocation.
Bitwise’s European Head of Research, André Dragosch, said the proposed investment could amount to $7.3 billion in Bitcoin. This would place CNB’s BTC reserves above its $4.3 billion gold holdings and account for roughly 5.3 months of newly mined Bitcoin.
Dragosch said:
“Czech central bank holds around 146 billion USD in official reserve assets of which 138 billion USD are FX reserves and 4.3 billion USD are gold. They plan to invest up to 5% of these reserves into BTC (approximately 7.3 billion USD / ~71,568 BTC).”
Czechia turns to Bitcoin
CNB’s Michl sees Bitcoin as a diversification tool amid rising institutional adoption. Michl pointed out the growing interest in cryptocurrency-related products, especially after asset managers such as BlackRock introduced BTC Exchange-Traded Funds (ETFs).
He also noted shifting US policies, including President Donald Trump‘s deregulation efforts and increased engagement between crypto firms and policymakers. The US administration has a friendly attitude towards the new industry. It recently issued an executive order to help make America the leader of the crypto sector.
Michl said:
“For the diversification of our assets, Bitcoin seems good…Those [Trump] guys can now kind of create some bubble for bitcoin, but I think the trend would be an increase without those guys as well, because it’s an alternative [investment] for more people.”
Michl says that Bitcoin is volatile but its growing adoption makes it a good candidate for inclusion in reserves. He acknowledged the risks but emphasized the CNB’s experience in managing fluctuating assets.
“It’s possible to have a big range of outcomes, that bitcoin will have a value of zero or an absolutely fantastic value . . . but in our history we have also had some stocks like Enron or the payment company Wirecard, so we have some experience with bad investments, so, yes, I’m ready [for a possible Bitcoin collapse],” He said.
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