The Czech National Bank (CNB) is considering a bold move that could make it the first central bank to hold Bitcoin. According to a recent interview, CNB Governor Aleš Michl plans to propose investing a chunk of the bank’s reserves— potentially around $7 billion— into the cryptocurrency. This potential investment is creating quite a buzz in the financial world.

The source revealed that Michl intends to present this plan to the board this Thursday, suggesting they allocate up to 5% of their €140 billion reserves into Bitcoin. The source explained that this significant purchase would be equivalent to about five and a half months’ worth of newly minted Bitcoin. While acknowledging Bitcoin’s well-known volatility and short history, Michl pointed out increasing investor interest following the launch of spot Bitcoin exchange-traded funds (ETFs), such as those from BlackRock, and also former President Trump’s campaign promises on crypto deregulation as reasons for his proposal. “For the diversification of our assets, Bitcoin seems good,” Michl told Financial Times, adding that he has a different perspective on crypto compared to other central bankers because he likes profitability.

Michl believes a more lenient regulatory environment under a potential Trump administration could drive Bitcoin’s price even higher. “Those [Trump] guys can now kind of create some bubble for Bitcoin,” he noted, “but I think the trend would be an increase without those guys as well.” The source emphasized that Michl sees Bitcoin as an alternative investment gaining traction among a wider range of people. He also suggested that more central banks might follow suit in the next five years. However, the source cautioned that the investment could potentially end up worthless as well.

The source noted that Bitcoin recently reached a high of $108,786 just before President Trump’s inauguration but has since slightly dropped to $105,251. This potential move by the Czech National Bank raises questions about whether other central banks will follow suit, and if it could be a turning point for institutional adoption of Bitcoin.

Source: Czech Central Bank Governor To Propose Stunning 7 Billion Bitcoin Reserve Plan | Zycrypto.com