Key Points
- Czech National Bank Governor Aleš Michl plans to propose a Bitcoin investment to the board.
- If approved, up to 5% of the bank’s reserves could be allocated to Bitcoin.
Aleš Michl, Governor of the Czech National Bank, intends to propose an investment in Bitcoin. This could mean allocating up to 5% of the bank’s reserves to the digital asset.
This is a bold move by Michl, as no other Western central bank has taken such an initiative. If accepted, up to 5% of the Czech National Bank’s €140 billion reserves could be allocated to Bitcoin.
Michl’s Bitcoin Investment Proposal
Michl is set to present his proposal to the CNB board on January 30. He stated to the Financial Times’ Raphael Minder that Bitcoin “seems good” for diversifying the bank’s assets.
While acknowledging Bitcoin’s volatility, Michl emphasized the increasing investor interest in the cryptocurrency. This interest has been particularly noticeable after BlackRock, the world’s largest asset manager, launched spot Bitcoin exchange-traded funds in 2024.
Michl, who used to run an investment fund, admitted that Bitcoin’s value could plummet to zero. However, he also sees its potential. According to CNB’s data, if 5% of its reserves had been in Bitcoin over the past decade, annual returns would have risen by 3.5% points, though volatility would have doubled.
Potential First Western Central Bank to Hold Bitcoin
If Michl’s plan is approved, the CNB could be the first Western central bank known to hold Bitcoin. This would put it alongside El Salvador, which holds 6,048 BTC worth approximately $619 million.
Meanwhile, the United States is also evaluating the feasibility of a “national digital assets stockpile.” While President Donald Trump recently signed an executive order to create a working group focused on cryptocurrencies, the order does not suggest the U.S. government should prioritize holding Bitcoin in its reserves.
