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Czech Central Bank To Vote On €7 Billion Bitcoin Investment On Thursday

Press Releases Crypto News Bitcoinist Czech Central Bank To Vote On €7 Billion Bitcoin Investment On Thursday

The Czech National Bank (CNB) is poised to decide on Thursday whether to allocate up to 5% of its €140 billion in foreign exchange reserves to Bitcoin, an amount totaling roughly €7 billion (roughly $7.31 billion). Governor Aleš Michl revealed the plan in an exclusive interview with the Financial Times, underlining a bold departure from the traditional asset strategies usually favored by major central banks.

CNB Eyes Bitcoin For 5% Of €140 Billion Reserves

Michl, who previously worked as an investment fund manager, expressed his conviction that introducing BTC into the CNB’s portfolio could serve as a viable way to diversify holdings. “For the diversification of our assets, Bitcoin seems good,” he told the FT. He acknowledged the cryptocurrency’s “extreme volatility” and limited track record but pointed to rising institutional interest since global asset managers like BlackRock launched Bitcoin exchange-traded funds last year.

Should the board approve the plan, the CNB could direct as much as 5% of its reserves—equivalent to approximately €7 billion—into Bitcoin. “Five percent [of our assets] is a lot of money, even for the Bitcoin market,” Michl noted, underscoring the potential impact of a sizable BTC purchase by a sovereign authority.

Most central banks around the world have steered clear of BTC, preferring “safer” instruments such as highly rated government bonds. A few have ventured into equities, but public disclosures of Bitcoin holdings by these institutions (except for El Salvador) remain virtually nonexistent.

Federal Reserve chair Jay Powell confirmed in December that the US central bank does not hold Bitcoin, while comparing it to gold, describing it as a virtual and digital speculative asset.

Other top monetary officials in Europe have been notoriously critical. The governor of the Bundesbank, Joachim Nagel,

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Author: Jake Simmons

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