Czech National Bank Governor Considers Bitcoin Investment Plan for Reserves
Czech National Bank Governor, Ales Michl, has revealed plans to propose a Bitcoin investment strategy to the board this Thursday, potentially directing 5% of the central bank’s $146.13 billion reserves into the leading cryptocurrency, according to an interview with the Financial Times.
Michl stated that Bitcoin is being considered as part of the bank’s asset diversification strategy, calling it a promising option. “For diversification of our assets, Bitcoin seems good,” he commented, as reported by the Financial Times and Reuters.
The governor highlighted growing institutional interest in Bitcoin, citing the launch of spot exchange-traded funds (ETFs) by major firms like BlackRock over the past year.
“Bitcoin is an asset with zero correlation to bonds, making it an intriguing option for large portfolios,” Michl explained. “While we’re currently in the analysis and discussion phase, no decisions are imminent. Any decisions will require careful consideration.”
Despite Bitcoin’s potential, Michl acknowledged the cryptocurrency’s high volatility, which complicates its integration into a diversified portfolio. “Given Bitcoin’s significant volatility, it’s challenging to capitalize on its low correlation with other assets. I’ll ask our team to assess its potential further during Thursday’s meeting. At this stage, it’s about analysis and exploration, not making final decisions,” he added.
