Czech Central Bank Moves to Explore Bitcoin as a Reserve Asset
ECB President Lagarde expresses confidence that Bitcoin will not be included in any EU central bank assets.
What to know:
- The Czech National Bank (CNB) approved a proposal to assess the potential investment of reserves in alternative assets.
- This proposal was suggested by CNB Governor Aleš Michl, who has shown interest in potentially integrating Bitcoin into the bank’s financial framework.
- Both the finance minister and ECB President Christine Lagarde have expressed skepticism regarding this notion.
Could Bitcoin (BTC) soon find its way onto the balance sheets of European central banks? A recent proposal suggests it might.
Last Thursday, the Czech National Bank (CNB) board approved a motion to explore diversifying reserves to include additional asset classes. The proposal focuses specifically on Bitcoin.
In a recent interview, Governor Aleš Michl revealed his goal: “My aim is to diversify the portfolio, so if Bitcoin proves favorable, then let’s include it.”
According to the CNB, further steps will depend on the analysis results prior to any implementation of this plan.
However, not everyone is in favor of this initiative. Finance Minister Zbyněk Stanjura remarked, “The central bank should symbolize stability. Considering Bitcoin’s volatility, it certainly does not fit that criterion.”
This proposal has garnered attention beyond the Czech borders, with ECB President Christine Lagarde noting, during a press conference, her confidence that Bitcoin will not be part of any EU central banks’ reserves.
Notably, while the Czech Republic remains an EU member, it does not utilize the euro.
The CNB has yet to specify which alternative assets it will consider.
