Czech Republic’s central bank Czech National Bank (CNB) Governor, Aleš Michl said the Bank is considering taking on Bitcoin as a reserve currency.
In an interview with CNN Prima News, Governor Michl said the Bank is thinking of investing a small amount of central bank funds in Bitcoin as a diversification asset.
Czech Republic joins list of countries seeing potential in Bitcoin
Bitcoin’s status as a treasury reserve asset has continued to gain momentum, with countries globally noticing the cryptocurrency’s potential as a store of value. Corporate entities are also taking on the digital asset, with notable firms continually taping into cryptocurrency.
However, Governor Michl revealed that the proposal has not yet been approved. There are seven members on the CNB board and Michl will need approvals from all of them to execute the plan.
“Luckily there are seven board members. We can continue to debate about it,” said Michl adding the investment was not going to be very significant.
“I was thinking of buying just a few Bitcoins.”
Michl.
However, Janis Aliapulios, the adviser to the National Bank board, confirmed the development. He noted that although the board considered the proposition, it is currently not pursuing Bitcoin diversification.
The subject was raised after Michl maintained the need for the Czech National Bank’s assets to be diversified across asset classes and foreign currencies. The central bank previously reduced its gold holdings to eight tons, now up to 50 tons. The plan is to now increase it to 100 tons in the next three and a half years.
Trump 2.0 is pushing Bitcoin adoption and confidence
Michl’s proposal is not unique to him alone as confidence in Bitcoin continues to grow. Before November 2024, Bitcoin was seen as an unstable asset with much volatility on the international market, but despite the view still being there, the perception around the asset has changed a great deal.
The change in perception is due to US President-elect Donald Trump’s glaring embrace of the digital asset. Not only did he call Bitcoin the currency of the future, but has said there is a possibility of a creation of a US national stockpile of the cryptocurrency.
In July 2024 at a Bitcoin conference, President Trump stuck to the script when it came to a Bitcoin reserve. He said the US would not sell the Bitcoin it already holds from confiscations and the like although he did not express intentions to buy the cryptocurrency.
Russia, Switzerland, and Brazil are considering the asset as a reserve currency. In the US Senator Cynthia Lummis presented a bill that is progressing, while other countries are keying into the Bitcoin FOMO.
Senator Cynthia Lummis introduced the Bitcoin Act, a program to purchase one million Bitcoins worth $100 billion at today’s prices so that the US acquires a stake of roughly 5% of all Bitcoin. Former Democrat US Treasury Secretary Larry Summers said, “There’s no reason to do that other than to pander to a generous special interest group.”
However, he acknowledged that “There are probably respects in which crypto has been overregulated by overzealous regulators.”
According to crypto market expert Anthony Scaramucci’s prediction, China will soon join the cryptocurrency bandwagon.
Meanwhile, the US’ growing crypto involvement contributed to Bitcoin’s surge to an all-time high of $108,000 early last month. After a slight correction, the asset recently reclaimed six figures, reinstating its credibility.
Weeks ago, Jim Cramer asked President Trump a direct question about a strategic reserve for crypto, and he replied, “I think so. We are going to do something great with crypto because we do not want China or anybody else, it is not just China, others are embracing it, and we want to be the head,” and then he moved on to AI.
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