Czech Central Bank Considers Adding Bitcoin to Reserves, Governor Says: FT

Czech Central Bank Considers Bitcoin for Reserves, Governor to Present Proposal

Czech National Bank (CNB) Governor Ales Michl is set to present a proposal on Thursday that could see Bitcoin (BTC) included in the nation’s foreign reserves. According to an interview published by the Financial Times (FT), the central bank is exploring allocating up to 5% of its $146.13 billion reserves to the cryptocurrency.

“Bitcoin presents an interesting option for diversifying our assets,” Michl stated in the interview, as reported by FT and Reuters. He pointed to the growing institutional embrace of Bitcoin, particularly following the introduction of spot BTC exchange-traded funds (ETFs) by BlackRock and other financial giants.

“Bitcoin’s low correlation with traditional assets, such as bonds, makes it a compelling asset to analyze for our reserves,” Michl said in a post on X. “Right now, we are in the early stages of discussion, and no final decision has been made. The Bank Board will evaluate all aspects before moving forward.”

However, Michl acknowledged Bitcoin’s volatility as a crucial consideration. “Before any decision, further assessment is necessary to determine whether Bitcoin can provide long-term benefits while managing risk. I will ask our team on Thursday to conduct a deeper review of Bitcoin’s potential role in our reserves,” he added.