TLDR
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- Czech National Bank Governor Aleš Michl discusses Bitcoin as a potential reserve asset
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- CNB currently holds 50 tons of gold, plans to increase to 100 tons in 3.5 years
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- The governor personally thought of buying “some bitcoin”.
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- Final decisions require the approval of all 7 board members
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- CNB keeps the focus on traditional assets: gold, stocks, bonds and cash deposits
The governor of the Czech National Bank (CNB), Aleš Michl, revealed that Bitcoin is being considered as part of the bank’s reserve strategy, although the institution currently maintains its focus on traditional assets. The disclosure came during a recent interview on the CNN Prima News party Terezie Tománková. Michl has expressed personal interest in Bitcoin, saying,
“I have Bitcoin in my mind, but our strategy now is low inflation, financial stability.”He clarified that his consideration is to buy “some bitcoin” instead of making substantial investments in the cryptocurrency. The central bank’s decision-making process requires consensus from its seven-member board. “I considered Bitcoin, but there are seven of us on the bank board. I think gold is enough now, but we can continue to discuss,” Michl explained in the interview. The CNB currently manages a diverse portfolio of foreign reserves, with holdings spread across multiple asset classes.
“We will have 30% of stocks, we have bonds, we have cash deposits, and we have gold. So that’s it,”Michl detailed when the bank’s reserve strategy discussion. Gold remains a central focus of the bank’s reserves expansion plans. CNB has increased its gold holdings from eight tons to 50 tons in recent years, with plans to double that amount in the next three and a half years. The ambitious gold acquisition strategy aims to bring the bank’s holdings to 100 tons, marking the highest level in the history of the Czech Republic. This expansion should be completed in about 3.5 years. In the interview, Michl also discussed the topic of Czech Republic potential adoption of the euro. He expressed skepticism towards joining the single currency, saying that “the euro is not salvation” and stressed that the CNB sees limited strategic advantage in leaving the Czech koruna. The governor described bitcoin as “a very interesting” asset but noted uncertainty surrounding its underlying technology. This cautious approach reflects the bank’s priority to maintain financial stability and control inflation. Market data shows that Bitcoin has demonstrated strong performance over the past year, with a 131% increase in value. That growth outpaces gold’s roughly 30% rise over the same period, according to TradingView data. CNB’s current reserve strategy focuses on maintaining a balanced portfolio across traditional asset classes. The bank’s holdings include a 30% allocation to stocks, in addition to investments in bonds and cash deposits. The adoption of Bitcoin represents a remarkable development for a central bank, although no immediate plans for acquisition exist. Any potential Bitcoin investment requires the approval of the entire bank board. The immediate focus of the bank remains on the execution of its gold acquisition strategy, which will double its holdings from the current 50 tons in the next 42 months. The CNB continues to prioritize its core objectives of maintaining low inflation and ensuring financial stability through its reserve management strategy. Recent data show that the current reserve composition of the bank remains mainly in traditional assets, without cryptocurrency holdings at the moment.
