#CzechBitcoinReserve?

The governor of the Czech National Bank (CNB), Aleš Michl, has proposed allocating 5% of the country’s reserves – around €140 billion – to Bitcoin, which would represent approximately €7 billion. The idea is to diversify the central bank’s assets and explore the potential benefits of digital currencies.

However, this proposal has sparked intense debate. Critics point out that Bitcoin’s high volatility makes it unsuitable for central bank reserves, which typically prioritize liquidity, stability and capital preservation. Investing in such a speculative asset could undermine the central bank’s credibility and financial stability.

In light of these concerns, Czech Finance Minister Zbynek Stanjura expressed skepticism about the idea, highlighting the risks associated with Bitcoin’s volatility.

The CNB is currently assessing the feasibility of this proposal, with no immediate plans to implement it. This debate reflects a broader global interest in the role that digital assets can play in national reserves.

Sources:

• Financial Times

• Decrypt

• Cointelegraph