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The governor of the Czech National Bank considers Bitcoin as a reserve strategy for the future.
The central bank governor, Aleš Michl, recently said he was considering investing in Bitcoin as part of the bank's diversification strategy.
The governor of the Czech National Bank, Aleš Michl, recently considered Bitcoin as a potential diversification strategy for the country's foreign exchange reserves, highlighting the government's growing interest in cryptocurrency as a savings technology.
In an interview with CNN Prima News, Michl said he was considering acquiring 'some Bitcoin' for diversification, which would not count as a significant investment for the bank.
The board of the Czech National Bank, composed of seven members, would have to approve any decision to acquire Bitcoin.
When asked about a possible acquisition, Janis Aliapulios, board advisor, confirmed that the bank is not currently planning a Bitcoin acquisition.
Still, Michl remains open to considering Bitcoin diversification in the future.
"In summary, the CNB is not considering purchasing crypto assets for its reserves. However, Governor Michl did not rule out that this topic could continue to be debated in the future," Aliapulios told Cointelegraph.
The bank will continue with its diversification plan through gold purchases in the near future, with plans to increase gold holdings to approximately 5% of its total assets by 2028, Aliapulios added.
Bitcoin could become an important reserve asset alongside gold, thanks to its strong annual returns. Over the past year, Bitcoin increased by more than 131%, while gold prices rose by around 30%, according to data from TradingView.
The annual returns of 130% for Bitcoin occurred while corporate executives sold shares at unprecedented levels at a ratio of six sellers for every buyer, Cointelegraph reported on December 13.
Michl's comments suggest a growing shift among governments and institutions that are reevaluating their financial strategies to include Bitcoin, according to Anndy Lian, author and intergovernmental expert on blockchain:
"As more countries reflect on this path, we could see a gradual redefinition of what constitutes a 'safe' reserve asset. If Bitcoin becomes a staple of national reserves, it could fundamentally alter the landscape of global finance, driving more decentralized and digital approaches to economic stability."
However, the volatility of Bitcoin's price could also be a 'double-edged sword' for national reserves, which could lead to wider financial swings, Lian added.
$$BTC