Czech National Bank Wants To Invest 5% Of Reserves In Bitcoin
Czech National Bank (CNB) Governor Aleš Michl has proposed allocating 5% of the bank’s 140 billion euro reserves to Bitcoin. Governor Michl will present a proposal to the board on Thursday to invest in Bitcoin as a strategy to diversify the CNB’s reserves, according to a report by the Financial Times . Despite Bitcoin’s “extreme volatility and limited track record,” Michl said investors’ growing interest in Bitcoin fueled his decision to diversify CNB’s reserves with the king of cryptos. He pointed out that last year, BlackRock and other firms launched Bitcoin ETFs (exchange-traded funds), sparking increased attention in the cryptocurrency. Czech National Bank’s goal is price stability. When we took office in July 2022, inflation was 17.5%. We brought it down to target. We are also diversifying reserves—gradually increasing gold holdings from 0% to around 5% and planning for 30% in equities. An asset under… https://...