The Czech central bank is considering including bitcoin in its reserves, according to Governor Ales Michl. It is the first Western central bank to consider buying cryptocurrency.
In an interview with the Financial Times, Michl revealed that he plans to submit a proposal to include bitcoin in the central bank’s reserves. However, he later wrote on X that the proposal requires further analysis and discussion before a decision can be made.
“No decision is imminent”, he writes. “Bitcoin has significant volatility, which makes it harder to take advantage of its current low correlation with other assets”, Michl continues.
If approved, up to 5% of the central bank’s reserves, equivalent to €140 billion, could be invested in bitcoin. This would make the Czech central bank the first Western central bank to hold cryptocurrency in its reserves.
Since Michl took over the leadership of the Czech central bank in 2022, he has focused on diversifying the bank’s reserves. This has included gradual gold purchases and an increased share of equities in the portfolio.
Bitcoin reached a new record high after Donald Trump took office. Meanwhile, financial giant BlackRock’s CEO Larry Fink predicts that the cryptocurrency could reach $700,000.
In January, Italy’s largest bank, Intesa Sanpaolo, invested over €1 million in bitcoin.