TLDR
Czech National Bank Governor Aleš Michl discussed Bitcoin as a potential reserve asset
CNB currently holds 50 tons of gold, plans to increase to 100 tons in 3.5 years
The governor personally considered buying “a few Bitcoin”
Final decisions require approval from all 7 board members
CNB maintains focus on traditional assets: gold, stocks, bonds, and cash deposits
The Governor of the Czech National Bank (CNB), Aleš Michl, has revealed that Bitcoin is under consideration as part of the bank’s reserve strategy, though the institution currently maintains its focus on traditional assets. The disclosure came during a recent interview on CNN Prima News’ Partie Terezie Tománková.
Michl expressed personal interest in Bitcoin, stating,
“I have Bitcoin in my head but our strategy now is low inflation, financial stability.”
He clarified that his consideration involved purchasing “a few Bitcoin” rather than making substantial investments in the cryptocurrency.
The central bank’s decision-making process requires consensus among its seven-member board. “I considered Bitcoin but there are seven of us on the bank board. I think gold will be enough now but we can continue to discuss it,” Michl explained during the interview.
The CNB currently manages a diverse portfolio of foreign exchange reserves, with holdings spread across multiple asset classes.
“We will have 30% of stocks, we have bonds, we have cash deposits, and we have gold. So that’s it,”
Michl detailed when discussing the bank’s reserve strategy.
Gold remains a central focus of the bank’s reserve expansion plans. The CNB has increased its gold holdings from eight tonnes to 50 tonnes in recent years, with plans to double this amount over the next three and a half years.
The ambitious gold acquisition strategy aims to bring the bank’s holdings to 100 tons, which would mark the highest level in the Czech Republic’s history. This expansion is scheduled to complete in approximately 3.5 years.
During the interview, Michl also addressed the topic of Czech Republic’s potential adoption of the euro. He expressed skepticism toward joining the single currency, stating that “the euro is no salvation” and emphasized that the CNB sees limited strategic advantage in abandoning the Czech Koruna.
The governor described Bitcoin as “a very interesting” asset but noted uncertainty surrounding its underlying technology. This cautious approach reflects the bank’s priority of maintaining financial stability and controlling inflation.
Market data shows Bitcoin has demonstrated strong performance over the past year, with a 131% increase in value. This growth outpaces gold’s approximately 30% rise during the same period, according to TradingView data.
The CNB’s current reserve strategy focuses on maintaining a balanced portfolio across traditional asset classes. The bank’s holdings include a 30% allocation to stocks, alongside investments in bonds and cash deposits.
The consideration of Bitcoin represents a notable development for a central bank, though no immediate plans for acquisition exist. Any potential Bitcoin investment would require approval from the full bank board.
The bank’s immediate focus remains on executing its gold acquisition strategy, which will see its holdings double from the current 50 tons over the next 42 months.
The CNB continues to prioritize its core objectives of maintaining low inflation and ensuring financial stability through its reserve management strategy.
Recent data indicates the bank’s current reserve composition remains predominantly in traditional assets, with no cryptocurrency holdings at present.
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