The Governor of the Czech National Bank (#CNB ), Aleš Michl, is preparing to propose the inclusion of Bitcoin in national reserves, with an investment capability of up to $7 billion. If this plan is approved, the Czech Republic could become the first Western central bank to hold digital assets.

Bitcoin – A New Direction in Reserve Strategy

According to the Financial Times, Governor Aleš Michl will present this proposal next Thursday. He believes that Bitcoin could help diversify the bank's assets, differing from the traditional approach of other central banks.

Michl emphasizes that his proposal is influenced by the growing interest of large financial institutions in Bitcoin, especially after BlackRock and several other companies launched spot Bitcoin ETFs. He also mentions the crypto-friendly stance of former US President Donald Trump as a factor influencing his decision.

Czech Republic is Gradually Opening Up to Crypto

This is not the first time the Czech Republic has attracted attention with policies related to digital currencies. In December 2024, the country's parliament passed a law exempting capital gains tax on Bitcoin if held for more than three years.

Earlier this month, Michl also mentioned considering $BTC as part of the foreign exchange reserves. If the $7 billion plan is approved, this would be an important step for the Czech Republic to join the group of pioneering countries in integrating digital assets into the financial system.

The Distinction of the Czech Central Bank

Compared to other central banks, the CNB has a distinct investment strategy. Currently, the bank allocates 22% of its portfolio to stocks, primarily in American tech companies such as #Apple and Microsoft. Their plan is to increase this ratio to 30% by 2029 instead of focusing on government bonds like traditional methods.

Meanwhile, most other central banks remain cautious with Bitcoin. The US Federal Reserve (Fed) has stated that they do not hold Bitcoin, while the European Central Bank (ECB) still believes that Bitcoin "has no real value" as of early 2024.

Opportunities and Risks When Investing in Bitcoin

Although he has an open stance, Michl still acknowledges that Bitcoin could become a worthless asset or achieve "great value." However, he asserts that his goal is not speculation, but rather to diversify national reserves.

"If Bitcoin is a good asset, then why don’t we own it?" – Michl emphasizes.

Currently, the Czech National Bank has not made an official comment on this plan. If the proposal is approved, this would be one of the most significant steps taken by a Western central bank regarding Bitcoin. #anhbacong