Czech National Bank considers investing in Bitcoin

Czech National Bank Governor Aleš Michl is considering investing in bitcoin as part of a possible diversification strategy for the country's foreign exchange reserves.

Michl said in a interview with CNN Prima News that he is considering acquiring “some bitcoin.”

There are no plans yet for the Czech National Bank to buy bitcoin

Before the national bank can start buying btcIt will need to obtain approval from its seven-member board of directors. Janis Aliapulios, one of the board's advisors, confirmed that the bank is not currently planning an investment in bitcoin when asked about a possible acquisition.

However, Michl is still open to the idea of ​​the bank diversifying its portfolio through btc. Until this happens, the bank will continue to invest in gold as part of its current diversification plan. Aliapulios said the bank aims to increase its holdings in the popular commodity to around 5% of its total assets by 2028.

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NEW: The governor of the Czech National Bank (CNB), Aleš Michl, is contemplating purchasing bitcoin as part of the country's foreign exchange reserves. pic.twitter.com/UVmhapS2FH

– bitcoin News (@BitcoinNewsCom) <a target="_blank" href="https://twitter.com/BitcoinNewsCom/status/1876335382658429122?ref_src=twsrc%5Etfw”>January 6, 2025

btc could become a “safe” reserve asset

Michl's comments come amid a shift between institutions and governments, which are evaluating whether btc could be included in their financial strategies, according to author and intergovernmental blockchain expert Anndy Lian.

Lian says there could be a “gradual redefinition of what constitutes a 'safe' reserve asset” as more governments and institutions consider an investment in btc.

In the past, gold has been the preferred asset for portfolio preservation. However, if we look at the past year, bitcoin is up more than 131%, while the price of gold is only up 30%, according to TradingView data.

One deterrent is btc's high levels of volatility. Lian warned that btc fluctuations could be a “double-edged sword” for national reserves that could lead to broader financial swings.

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