Governor of the Czech National Bank Considers Bitcoin a Forward-Looking Reserve

Central bank governor Aleš Michl recently stated that he is considering investing in Bitcoin as part of the bank’s diversification strategy.

The governor of the Czech National Bank, Aleš Michl, suggested the possibility of including Bitcoin in the country’s foreign exchange reserves, highlighting growing governmental interest in cryptocurrency as a potential savings technology.

In an interview with CNN Prima News, Michl mentioned the potential acquisition of “a few Bitcoin” for diversification purposes, clarifying that such an investment would not represent a substantial portion of the bank’s reserves.

Approval Required for Bitcoin Acquisitions

Any decision to acquire Bitcoin would need approval from the Czech National Bank’s seven-member board.

When asked about the likelihood of such a move, Janis Aliapulios, an advisor to the board, stated that the bank currently has no plans to invest in Bitcoin. However, Michl remains open to the idea of incorporating Bitcoin as part of future diversification strategies.

Aliapulios added that the bank will continue its diversification program by increasing its gold reserves, aiming to reach approximately 5% of its total assets by 2028.

Bitcoin’s Potential Role as a Reserve Asset

Bitcoin’s remarkable annual returns make it a potential complement to traditional reserve assets like gold. Over the past year, Bitcoin has risen by more than 131%, compared to gold’s 30% increase, according to TradingView data.

Michl’s comments reflect a growing trend among governments and institutions reassessing financial strategies to incorporate Bitcoin. According to Anndy Lian, an intergovernmental blockchain expert and author:

“As more countries consider 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, Lian also noted that Bitcoin’s price volatility could pose risks for national reserves, potentially leading to larger financial fluctuations.

Bitcoin Act Could Strengthen Its Role as a Savings Technology

In the United States, Bitcoin’s status as a savings technology is gaining traction. The Bitcoin Act, championed by Wyoming Senator Cynthia Lummis, proposes the creation of a strategic Bitcoin reserve.

Anastasija Plotnikova, co-founder and CEO of Fideum, highlighted that the Bitcoin reserve proposal has gained significant momentum following Donald Trump’s victory in the November 2024 presidential election and the emerging Republican majority in the U.S. Senate.

“With bipartisan support, the bill could pass within the next four years,” Plotnikova stated. She also pointed to state-level initiatives like Pennsylvania’s Bitcoin Strategic Reserve Act, which serve as models for broader adoption.

The proposal has garnered support across party lines, including from Democratic Representative Ro Khanna, the first Democrat to endorse a Bitcoin reserve. States like Texas and Pennsylvania have introduced similar proposals, signaling widespread interest in the idea.

Bitcoin’s Potential Impact

Industry leaders suggest the approval of the Bitcoin Act could have far-reaching implications for Bitcoin’s value. Adam Back, co-founder and CEO of Blockstream stated, “If the Bitcoin Act is approved by U.S. lawmakers, Bitcoin’s value could eventually surpass $1 million.”

Back, a prominent cryptographer and creator of Hashcash, emphasized the transformative potential of Bitcoin as a global financial instrument.