bitcoin
bitcoin

$94644.513228 USD

-2.36%

ethereum
ethereum

$3339.264334 USD

-1.40%

tether
tether

$0.999565 USD

-0.02%

xrp
xrp

$2.359544 USD

0.58%

bnb
bnb

$698.475101 USD

-0.26%

solana
solana

$196.670242 USD

-2.03%

dogecoin
dogecoin

$0.341845 USD

-2.45%

usd-coin
usd-coin

$1.000000 USD

0.00%

cardano
cardano

$0.945690 USD

-5.91%

tron
tron

$0.248706 USD

-1.83%

avalanche
avalanche

$37.380886 USD

-4.75%

sui
sui

$4.829667 USD

0.13%

toncoin
toncoin

$5.311253 USD

-0.01%

chainlink
chainlink

$20.472059 USD

-4.26%

stellar
stellar

$0.419189 USD

-2.99%

Cryptocurrency News Articles

Czech Central Bank Governor Considers Bitcoin Purchase as Part of Reserve Diversification Strategy

Jan 08, 2025 at 12:30 pm

In a recent appearance on CNN Prima News' Partie Terezie Tománková, Governor of the Czech National Bank (CNB) Aleš Michl discussed the institution's monetary stance, its growing gold reserves, and the possibility of investing in Bitcoin.

Czech Central Bank Governor Considers Bitcoin Purchase as Part of Reserve Diversification Strategy

Governor of the Czech National Bank (CNB) Aleš Michl recently discussed the institution's monetary stance, growing gold reserves, and the possibility of investing in Bitcoin during an appearance on Partie Terezie Tománková of CNN Prima News. The interview, initially reported by Seznam Zprávy, provided a rare insight into the central bank's foreign exchange reserves strategy and the governor's personal views on BTC.

CNB Governor Open to Investing in Bitcoin, but Institution Prefers Gold, Monetary Policy to Stay Unchanged

Michl began by expressing his skepticism towards the Czech Republic adopting the euro, highlighting that joining the single currency would not resolve the country's economic challenges. "The euro is no salvation," he stated, adding that the CNB currently sees limited strategic advantage in giving up the Czech Koruna.

In addition to the euro discussion, Michl elaborated on the CNB's aspirations to bolster and diversify its foreign exchange reserves. The bank has notably ramped up its gold holdings in recent years, increasing it from eight tons to the current fifty tons, with plans to expand further.

"We'll have 100 tons [...] we'll make it in about 3 and a half years and we'll have the most in the history of the Czech Republic," the governor said, specifically detailing the timeline. He emphasized that the CNB's approach to risk mitigation involves distributing reserves across different asset classes: "We have foreign exchange reserves and we need to invest them well, diversify [...] so that between each other, those asset classes are diversified."

Crucially, while gold forms the cornerstone of the CNB's reserve policy, Michl also addressed the growing discourse around Bitcoin. When asked directly if the CNB had ever considered putting funds into Bitcoin, he noted that this is a topic which "often permeates political discussion especially from young people."

"Yes, I had Bitcoin in my mind," he revealed, although quickly clarifying that such an idea has not been adopted as formal policy: "I was considering Bitcoin [...] but luckily there are seven of us on the board and I think the gold will be enough for now. But we can keep debating it."

The central bank's priority is "low inflation [and] financial stability," which makes a large-scale entry into Bitcoin unlikely in the immediate future, as explained by Michl. Nonetheless, he recognized Bitcoin's appeal as a potential hedge in a diversified portfolio, calling it "a very interesting thing [...] as a diversification against other assets."

He highlighted that any small-scale Bitcoin purchase under consideration would be minuscule, especially in comparison to the CNB's ongoing gold accumulation. "I was thinking of buying just a few bitcoins. I didn't mean to invest massively in it while we're still on gold," as stated by Michl.

Meanwhile, BTC trades at $100,921 at press time.

News source:bitcoinist.com

Disclaimer:info@kdj.com

The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!

If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.

Other articles published on Jan 09, 2025