Key dealers
- The Czech National Bank is considering a Bitcoin test portfolio to better understand the digital asset.
- The CNB manager emphasizes studying Bitcoin as a high-risk supply and its underlying technology.
The Czech National Bank (CNB) governor Aleš Michl urged central banks to study bitcoin and its underlying technology. Michl -Differentiated Bitcoin from other crypto assets and claims that examination of bitcoin will only be advantageous, not harmful.
“(Bitcoin) should not be lumped together with other crypto assets. We central banks should study it and explore the technology on which it is built. Studying bitcoin will not hurt us – on the contrary, it will strengthen us, ”Michl split on a Wednesday statement on X.
Last month CNB initiated a review process To consider integrating Bitcoin into its international reserve management strategy. The move is part of the bank’s strategy for diversifying its reserve portfolio of $ 7 billion.
Michl, who led the initiative, said in an interview earlier in January that he Considered to adopt bitcoin For CNB’s foreign exchange reserve strategy. However, the bank’s head also noted at that time that their focus was on assets that offer “low inflation” and “financial stability.”
The CNB Governor further explained its basis in today’s service and stated that the initiative aims to gain practical experience with Bitcoin, adapt to developing financial landscapes and investigate alternative reserve management strategies.
Michl warned that Bitcoin’s value could eventually reach one of two extremes: “either zero or a huge amount.”
“I also emphasized that Bitcoin is a high-risk asset to professional investors who are aware of all risks,” stated Michl and emphasized that the analysis is only the beginning-not investment decision will be made until it is complete and the board makes a final decision.
With the help of the Crypto Asset Market, Michl strongly prevailed extreme caution and compares the current market with the early days of capitalism in the 1990s. He urged investors to just invest in what they understand and “are willing to accept the risk of potentially losing” the entire investment.
CNB’s potential investment in Bitcoin was able to position the bank as the first major western central bank to have digital assets in its reserves. However, the plan is facing criticism from the finance minister due to Bitcoin’s volatility.