Aleš Michl, the Governor of the Czech National Bank (CNB), recently stated that they are considering incorporating Bitcoin as part of the diversification of foreign exchange reserves, which has sparked heated discussions in the market.
Although the CNB currently has no plans to purchase crypto assets immediately, whether to adopt them in the future still requires board approval. However, this move is seen as a positive signal at the national level for including Bitcoin as a reserve asset.
Matt Hougan, Chief Investment Officer at Bitwise, remarked that the strategic Bitcoin reserve plan of the Czech Republic marks the beginning of the 'domino effect,' as he had previously predicted that the adoption of Bitcoin by various countries would significantly increase this year. In recent years, Bitcoin has performed exceptionally well, with annual returns far exceeding those of gold, potentially becoming an important reserve asset beyond gold.
If more countries include Bitcoin in their reserves, it could redefine the concept of 'safe' reserve assets, but its price volatility also poses risks. The CNB also plans to continue diversifying its reserves by purchasing gold, aiming to increase gold holdings to 5% of total assets by 2028.
